CI Financial announces adoption of Unitholder Rights Plan

    TSX Symbol: CIX.UN

    TORONTO, Oct. 21 /CNW/ - CI Financial Income Fund ("CI" or the "Fund")
(TSX: CIX.UN) today announced that its Board of Trustees has adopted a
Unitholder Rights Plan (the "Rights Plan"). The Rights Plan is designed to
ensure the fair treatment of the Fund's unitholders in any transaction
involving a change of control of the Fund and to provide the Board and the
Fund's unitholders with adequate time to evaluate any unsolicited takeover bid
and, if appropriate, to seek out alternatives to maximize unitholder value.
The Rights Plan is subject to its approval or acceptance by the Toronto Stock
Exchange and is expected to be submitted for ratification by eligible
unitholders at the special meeting of unitholders to be held on December 19,
    The Rights Plan in the form approved is not intended to, and would not,
hinder full and fair offers for control of the Fund that are made to all
unitholders. In particular, the Rights Plan contains a customary "permitted
bid" exclusion which makes it inapplicable to a take-over bid made to all
unitholders which is open for acceptance for at least 60 days and otherwise
complies with customary "permitted bid" requirements. The Rights Plan is
similar to other rights plans adopted by many Canadian income trusts and
corporations. Until the occurrence of certain specific events, the rights
associated with the Rights Plan will trade with the units of the Fund and
exchangeable limited partnership units of Canadian International LP, and be
represented by any certificates for such units. The rights issuable under the
Rights Plan would generally become exercisable when a person, together with
any parties related to it, acquires or announces its intention to acquire 20%
or more of the Fund's outstanding voting units without complying with the
"permitted bid" provisions of the Rights Plan, subject to waiver or deferral
by the Board in certain circumstances. Persons who beneficially own or have
the right to acquire 20% or more of the Fund units (including securities
exchangeable into Fund units) at the time the Rights Plan becomes effective
are deemed to be "Grandfathered Persons" under the Rights Plan, provided that
they do not acquire beneficial ownership or control of more than an additional
1% of outstanding units following the date the Rights Plan becomes effective.
As a result, Sun Life Financial, the current owner of approximately 36.5% of
the outstanding voting units of the Fund, and The Bank of Nova Scotia, which
has entered into an agreement to acquire those units from Sun Life Financial,
will each be grandfathered with respect to their ownership interest.
    The form of Rights Plan approved by the Board will be available for
review at once the Fund has received approval for the Rights
Plan from the Toronto Stock Exchange.

    About CI

    CI Financial Income Fund (TSX: CIX.UN) is an independent, Canadian-owned
wealth management company. CI offers a broad range of investment products and
services, including an industry-leading selection of investment funds, and is
on the Web at On October 15, 2008, CI announced that it plans
to convert into a corporate structure. The conversion of the Fund to a
corporation is subject to unitholder, court and other approvals and will be
implemented pursuant to a statutory plan of arrangement under applicable
corporate legislation. Unitholders of record on November 7, 2008 will be
entitled to vote on the conversion at a special meeting, which is to be held
on December 19, 2008.

    This press release contains forward-looking statements with respect to CI
and its products and services, including its business operations and strategy
and financial performance and condition. Although management believes that the
expectations reflected in such forward-looking statements are reasonable, such
statements involve risks and uncertainties. Actual results may differ
materially from those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially from expectations
include, among other things, general economic and market factors, including
interest rates, business competition, changes in government regulations or in
tax laws, and other factors discussed in materials filed with applicable
securities regulatory authorities from time to time.

For further information:

For further information: William T. Holland, Chief Executive Officer,
(416) 364-1145

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