The board of directors of Canada Bread Co. Ltd., Toronto, today announced that it has established a special committee comprised of independent directors in connection with the potential sale by its parent company, Maple Leaf Foods Inc., of its 90% interest in Canada Bread.

Maple Leaf has advised the Canada Bread Board that it is exploring strategic alternatives for its bakery business, including a potential sale of the company’s 90% interest in Canada Bread. The special committee was established to seek to ensure that all Canada Bread shareholders are treated fairly and that the company’s interests are taken into account during any process that may affect Canada Bread.

The special committee has engaged CIBC World Markets Inc. as its financial adviser, has engaged independent legal counsel and is authorized to retain other advisers as it considers appropriate. It does not intend to comment further on the process being undertaken by Maple Leaf until it deems disclosure appropriate.

Canada Bread is a leading manufacturer and marketer of value-added flour-based products, including fresh bread, rolls, bagels, sweet goods, frozen partially baked or par-baked breads and bagels, and specialty pasta and sauces. The company markets products under a number of leading brand names, including Dempster's, Olafson's, POM, Ben's and Olivieri.

Source: Canada Bread Co. Ltd.