Canadian Imperial Bank Raises PrivateBancorp Bid

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 [e-mail]

(END) Dow Jones Newswires

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

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