PrivateBancorp Postpones Shareholder Vote on CIBC Offer
December 07 2016 - 10:00AM
Dow Jones News
PrivateBancorp Inc. said Wednesday it had postponed a
shareholder vote on the proposed $3.8 billion cash-and-stock
takeover offer from Canadian Imperial Bank of Commerce due to
market conditions that have pushed the Chicago-based lender's
shares higher over the past few weeks.
The special meeting of PrivateBancorp shareholders, originally
planned for Thursday, is now expected to be held early in the first
quarter of next year, the U.S. lender said.
"In view of the significant changes to trading market conditions
over the past few weeks, we believe it is in the best interests of
all of PrivateBancorp's stockholders to have additional time to
consider the value and long-term strategic benefits of this
transaction," PrivateBancorp Chairman James Guyette said in a
release. He said the bank remains committed to the takeover.
CIBC, Canada's fifth-largest lender by assets, agreed in June to
buy PrivateBancorp in a bid to expand in the U.S. to help fuel
growth. Its cash-and-stock offer at the time had valued the deal at
$47 a share, or a 31% premium over PrivateBancorp's closing price
of $35.93 on June 28, the day before the offer was announced.
Shares of PrivateBancorp closed at $52.14 in its most recent
trading session, up about 45% since CIBC first announced its offer
of $18.80 in cash plus 0.3657 of a CIBC share for each
PrivateBancorp share. Shares of U.S. banks have surged since the
U.S. election on hopes that President-elect Donald Trump will ease
some of their regulatory burdens.
CIBC, which last week raised its dividend and posted
better-than-expected fiscal fourth-quarter earnings, closed Tuesday
at $82.42 in New York, up nearly 7% from when the offer was
announced. Based on its latest closing price, CIBC's cash-and-stock
offer values PrivateBancorp shares at nearly $49 each.
CIBC said it believes its offer provides "significant immediate
and long-term value" to the shareholders of PrivateBancorp.
"We remain committed to this transaction on the agreed terms,
which were established by both companies based on our analysis of
the fundamental, long-term merits of the combination," CIBC Chief
Executive Victor Dodig said in a release.
CIBC said both it and PrivateBancorp are continuing to work on
obtaining regulatory approvals and developing integration plans for
their operations.
Write to Judy McKinnon at judy.mckinnon@wsj.com
(END) Dow Jones Newswires
December 07, 2016 09:45 ET (14:45 GMT)
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