UPDATE 1-CIBC in talks with TD Bank to keep half Aeroplan portfolio

Mon Aug 12, 2013 2:00pm EDT
 
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* TD replaces CIBC as issuer of flight rewards card

* CIBC's right to match TD's deal expired on Friday

* CIBC objects to TD's agreement with Aimia

By Cameron French

TORONTO, Aug 12 (Reuters) - Canadian Imperial Bank of Commerce is in talks to retain about half of its Aeroplan credit card portfolio after Toronto-Dominion Bank replaced it on Monday as the issuer of the popular flight rewards card.

TD said in June it would replace CIBC as issuer of the "Aerogold" card after Aimia Inc, which runs the Aeroplan loyalty program, and CIBC were unable to agree an extension of their 22-year partnership.

CIBC's right to match TD's deal with Aimia expired on Friday.

CIBC, the smallest of Canada's big five banks, said on Monday it was in talks to sell about half its Aerogold portfolio to TD, but that it wants to retain cards held by clients who have a "broader banking relationship" with the bank. It said it is seeking to issue Aerogold cards to those customers for at least 10 years.

If an agreement with TD can't be reached by Aug. 26, CIBC said it has a right to legally challenge TD's deal with Aimia. CIBC said Aimia's deal with TD is not valid because it doesn't comply with Aimia's obligations to CIBC.   Continued...