divform6k.htm
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Report of Foreign Issuer
 
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
 
For the month of January, 2011
 
Commission File Number: 001-02413
 
Canadian National Railway Company
(Translation of registrant’s name into English)
 
935 de la Gauchetiere Street West
Montreal, Quebec
Canada H3B 2M9
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F:

Form 20-F ____                                                      Form 40-F    X                                

Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1):

Yes ____                                           No   X

Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):

Yes ____                                           No   X

Indicate by check mark whether by furnishing the information contained in this
Form, the Registrant is also thereby furnishing the information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes ____                                           No   X

If “Yes” is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): N/A

 
 
 
 
Canadian National Railway Company

Table of Contents
 
Item
 
2.    Notice of intention to make a normal course issuer bid ("NCIB") 
 
 

 
 
 
 
Item 1
 
CN Logo
North America’s Railroad
 
NEWS RELEASE
 
CN announces new share repurchase program
and 20 per cent increase in quarterly cash dividend
 
MONTREAL, Jan. 25, 2011 — CN (TSX: CNR)(NYSE: CNI) announced today that its Board of Directors has authorized a normal-course-issuer bid to purchase, for cancellation, up to 16.5 million, or 3.6 per cent, of the common shares issued and outstanding of the Company on Jan. 17, 2011. Approximately 459.6 million CN common shares were issued and outstanding on that date.

The price to be paid by CN for any common shares will be the market price at the time of acquisition, plus brokerage fees, or such other price as the Toronto Stock Exchange (TSX) may permit.

CN recently completed a share repurchase program announced in January 2010, under which it repurchased 15 million common shares at a weighted-average price of C$60.85 per share, excluding brokerage fees.

The new repurchase program – starting on Jan. 28, 2011, and ending no later than Dec. 31, 2011 – will be conducted through the facilities of the Toronto and New York stock exchanges and will conform to their regulations. TSX rules permit CN to purchase daily, through TSX facilities, a maximum of 247,988 common shares under the Company’s repurchase program. Purchases under the normal-course-issuer bid will be made by means of open market transactions or such other means as the TSX or a securities regulatory authority may permit.

CN’s management and Board of Directors believe that the repurchase by the Company of its shares represents an appropriate use of its funds to increase shareholder value. Having a strong balance sheet and solid cash generation prospects, CN can undertake the share buy-back while continuing to pursue other business opportunities.

CN also announced today that its Board of Directors has approved a 20 per cent increase in the Company’s quarterly cash dividend. A quarterly dividend of thirty-two and one-half cents (C$0.325) per common share will be paid on March 31, 2011, to shareholders of record at the close of business on March 10, 2011.

Including today’s announcement, CN has declared increases in its cash dividend for 15 consecutive years since the Company’s initial public offering of shares in 1995.

Luc Jobin, CN executive vice-president and chief financial officer, said: “CN posted strong financial results for 2010 that benefited from the economic recovery and a solid overall corporate performance, with free cash flow exceeding C$1.1 billion. The
 
 

 
 
 

Company believes it is well positioned to continue its policy of rewarding shareholders by substantially increasing its dividend for 2011 and returning additional cash through a new share buy-back program.”

Forward-Looking Statements

Certain information included in this news release are “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws, including potential purchases of common shares for cancellation under a normal course issuer bid. CN cautions that, by their nature, these forward-looking statements involve risk, uncertainties and assumptions, and are subject to our board's discretion in respect of the declaration of dividends. The Company cautions that its assumptions may not materialize and that the current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty.

Important risk factors that could affect the above forward-looking statements include, but are not limited to, the effects of general economic and business conditions, industry competition, inflation, currency and interest rate fluctuations, changes in fuel prices, legislative and/or regulatory developments, compliance with environmental laws and regulations, actions by regulators, various events which could disrupt operations, including natural events such as severe weather, droughts, floods and earthquakes, labor negotiations and disruptions, environmental claims, uncertainties of investigations, proceedings or other types of claims and litigation, risks and liabilities arising from derailments, and other risks and assumptions detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should be made to “Management’s Discussion and Analysis” in CN’s annual and interim reports, Annual Information Form and Form 40-F filed with Canadian and U.S. securities regulators, available on CN’s website, for a summary of major risks and assumptions.

CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable Canadian securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

CN – Canadian National Railway Company and its operating railway subsidiaries – spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, and Jackson, Miss., with connections to all points in North America. For more information on CN, visit the Company’s website at www.cn.ca.
 
 
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Contacts:
Media
Investment Community
Mark Hallman
Robert Noorigian
Director
Vice-President
Communications and Public Affairs
Investor Relations
(905) 669-3384
(514) 399-0052
 
 
 
 

 
 
 
 
 
 
Form:  12
NOTICE OF INTENTION TO MAKE A NORMAL COURSE ISSUER BID (“NCIB”)
Issuer Name: CANADIAN NATIONAL RAILWAY COMPANY                             Stock Symbol: CNR
 

 
 
 
 


1.  
Securities Sought:

(a)  
Class(es) of securities subject to the NCIB  :  Common Shares

(b)  
Total number of securities:

(i)    
issued and outstanding: 459,558,147 (as of January 17, 2011)
 
(ii)  if applicable, in the total public float :  458,187,610 (as of January 17, 2011)

(c)  
Percentage of securities that may be purchased under the NCIB:

 
(i)  % of issued and outstanding (maximum 5%): 3.6%
 
(ii) % of the public float, as the case may be (maximum 10%): N/A

 
(d) 
Maximum number of securities that may be acquired under the NCIB: 45,818,761

 
(e) 
Number of securities the issuer intends to acquire under the NCIB:  16,500,000

(f)  
Is the issuer an investment fund:  No

 
If the answer is NO, the average daily trading volume for completed six calendar months prior to date hereof: 991,955 shares for the period between July 1, 2010 to December 31, 2010

(g)  
Does the issuer have a class of restricted securities:  No

If the answer is YES:

 
(i)
describe the voting rights of all equity securities:  N/A

 
(ii)
if the issuer does not propose to make the same NCIB for all classes of voting and equity securities, the reasons for so limiting the NCIB:  N/A

(h)  
Whether the securities are going to be cancelled. If such securities are not cancelled, state how such securities will be dealt with: Securities will be cancelled

 
2.
Duration:  State the dates on which the NCIB will commence and terminate. The NCIB may not extend for a period of more than one year from the date on which purchases may commence: January 28, 2011 up to and including December 31, 2011.

3.  
Method of Acquisition:  State the following:

 
(a)
whether purchases will be effected through the facilities of TSX and identify any other exchanges or market places on which purchases will be made:  Yes – the TSX and the NYSE or by such other means as may be permitted by the TSX, including pre-arranged crosses

 
(b)
whether purchase and payment for the securities will be made by the issuer in accordance with the requirements of TSX:  Yes, and in accordance with the requirements of NYSE
 
 

 
 
 

 
(c)
whether the price that the issuer will pay for any securities acquired by it will be the market price of the securities at the time of acquisition: Yes, plus brokerage fees, or such other price as may be permitted by the TSX. All of the Common Shares purchased will be cancelled.

(d)  
whether purchases (other than by way of exempt offer) will be made other than by means of open market transactions during the period the NCIB is outstanding:  Yes, and by other means as may be permitted by the TSX, including pre-arranged crosses and private agreements under an issuer bid exemption order issued by a securities regulatory authority.

 
4.
Consideration Offered:  State whether there are any restrictions on the price the offeror is prepared to pay and any other restrictions relating to the NICB, such as specific funds available, method of purchasing, etc.:  None

 
5.
Reasons for the NCIB: State the purpose or business reasons for the NCIB: CNR’s management and Board of Directors believe that the repurchase by the Company of its shares represents an appropriate use of its funds to increase shareholder value. Having a strong balance sheet and solid cash generation prospects, CN can undertake the share buy-back while continuing to pursue other business opportunities.

 
6.
Valuation:  State whether there has been any appraisal or valuation of the issuer to the best knowledge of the directors or officers of the issuer, after reasonable enquiry, regarding the issuer, its material assets or securities prepared within the two years preceding the date of the notice, together with a statement of a reasonable time and place at which such appraisal or valuation, or a copy thereof, may be inspected. For this purpose, the phrase appraisal or valuation means both an independent appraisal or valuation and a material non-independent appraisal or valuation. If there has been such an appraisal or valuation, include a summary of such appraisal or valuation: To the best knowledge of CNR’s directors and officers, after reasonable enquiry, CNR has not, in the past two-year period preceding the date hereof, obtained an appraisal or valuation regarding CNR or its material assets or securities.

 
7.
Previous Purchases:  – Where the issuer has purchased securities under a NCIB within the past 12 months, state the following:

 
(a)
method of acquisition:  Through the TSX and NYSE facilities and private agreements under an issuer bid exemption order issued by a securities regulatory authority.

(b)  
the number of securities purchased:  15,000,000 Common Shares

 
(c)  
the weighted average price paid per security:  Cdn $60.85, excluding brokerage fees.

 
8.
Persons Acting Jointly or In Concert with the Issuer:  Disclose the identity of any party acting jointly or in concert with the issuer:  None

9.  
Acceptance by Insiders, Affiliates and Associates:

 
(a) name of every director or senior officer of the issuer who intends to sell securities of the issuer during the course of the NCIB:  None – see below
 
 

 
 
 
(b) where their intention is known after reasonable enquiry, the name of every associate of a director or senior officer of the issuer, person acting jointly or in concert with the issuer, or person holding 10% or more of any class of equity securities of the issuer, who intends to sell securities: None - see below

 
Except as set out below, to the knowledge of the directors and senior officers of CNR, after reasonable enquiry, no director or senior officer of CNR and no associate of a director or senior officer of CNR or any person acting jointly or in concert with CNR, or any person holding 10% or more of any class of equity securities of CN, has any present intention to sell Common Shares during the period of the Offer. However, sales of Common Shares through the facilities of the Exchanges or otherwise by any of these persons or companies may occur during such period in the event that the circumstances or decisions of any such person or company change or their personal circumstances require such sales. Certain directors and senior officers of CNR may exercise options to purchase Common Shares under the existing stock option plans of CNR and in turn sell Common Shares in open market transactions.


 
10.
Benefits from the NCIB:  State direct or indirect benefits to any of the persons or companies named in item 9 of selling or not selling securities of the issuer during the course of the NCIB. An answer to this item is not required where the benefits to such person or company of selling or not selling securities are the same as the benefits to any other security holder who sells or does not sell:  None

 
11.
Material Changes in the Affairs of the Issuer:  Disclose any previously undisclosed material changes or plans or proposals for material changes in the affairs of the issuer:  None

 
12.
Participating Organization Information:

 
Canada
 
U.S.
(a) Brokerage Firm:
 
RBC Dominion Securities Inc.
Wells Fargo Securities, LLC
(b) Name of registered representative:
 
Joanne Stewart, Vice President
Jennifer Lynch, Managing Director, Special Equities
(c) Address of brokerage firm:
 
2nd Floor, South Tower, Royal Bank Plaza, P.O. Box 200 Bay Street , Toronto Ontario M5J 2W7
375 Park Avenue
4th Floor
New York, New York 10152
(d) Fax number:
(416) 842-6100
(212) 214-6122
(e) Telephone number
(416) 842-6274
(212) 214-8918


 
 
13.
Disclose any significant information regarding the NCIB not disclosed above, including any details regarding the use of put options or forward purchase contracts in conjunction with the NCIB:  None
 
 

 
 
 

 
14.
Certificate:  The undersigned, a director or senior officer of the issuer duly authorized by the issuer’s board of directors, certifies that this notice is complete and accurate and in compliance with Section 629 and 629.1 of the TSX Company Manual. This notice contains no untrue statement of a material fact and does not omit to state a material fact that is required to be stated or that is necessary to make a statement not misleading in the light of the circumstances in which it is made.
 
 

 
 
 
January 25, 2011
 
 

 
 

 
 
 
(s) Sean Finn_____________          _____
 
 

 
 
 
NAME: Sean Finn
 
 
 
TITLE: Executive Vice-President Corporate Services and Chief Legal Officer
 
 

 


 
Form 12 – Notice of Intention to make a Normal Course Issuer Bid© 2008, TSX Group Inc.
 
 
(as at June 16, 2008)
 
 
 
 

 

SIGNATURES
 
        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
   
Canadian National Railway Company
  
           
Date: January 25, 2011 
By:
/s/ Cristina Circelli
  
     
Name:
Cristina Circelli
  
     
Title:
Deputy Corporate Secretary and
General Counsel