By Imani Moise 

Canadian Imperial Bank of Commerce has raised the stakes of its takeover bid for PrivateBancorp Inc., boosting the deal price by about $1 billion.

Both companies said Thursday that PrivateBancorp investors now will receive a combination of CIBC stock and cash valued at about $60.92 per share, representing an 8% premium to Wednesday's closing price. The revised agreement values the deal at $4.89 billion, compared with the $3.8 billion offer from last year. Directors at CIBC and PrivateBancorp have approved the revised deal.

CIBC, Canada's fifth-largest lender by assets, agreed in June to buy Chicago-based PrivateBancorp in an effort to expand its U.S. presence to help fuel growth. The original deal offered a 31% premium to PrivateBancorp's share price the day before the deal was announced.

PrivateBancorp postponed a vote on the offer in December after a run-up in bank stocks following the November presidential election. The deal is now expected to close by the second quarter of 2017.

Shares of PrivateBancorp rose 5.3% to $59.19 during morning trading Thursday while CIBC shares dropped 3% to $85.27.

Write to Imani Moise at imani.moise@wsj.com

 

(END) Dow Jones Newswires

March 30, 2017 11:15 ET (15:15 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
Privatebancorp (NASDAQ:PVTB)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Privatebancorp Charts.
Privatebancorp (NASDAQ:PVTB)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Privatebancorp Charts.