Canadian Imperial Bank Raises PrivateBancorp Bid
March 30 2017 - 11:30AM
Dow Jones News
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.
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