From the standpoint of using this front derailleur with the Shimano XTR front shifter you shouldn't have any problems. It probably won't function as well as an XTR derailleur would, but it will work.
As for the compatibility with the Cannondale frame, we really aren't sure of that. What I would recommend is getting in touch with a Cannondale dealer and checking with them. Since we don't carry Cannondale we don't have all the info about the compatibility of their frames so I would hate to give you some bad info about that.
If you have any other questions or would like to further discuss this please feel free to give us a shout at 1.888.276.7130.