CIBC boosts takeover offer for PrivateBancorp to more than $6B

Shares of Canadian Imperial Bank of Commerce traded lower Thursday after the bank boosted its takeover bid for PrivateBancorp by 20 per cent.

Under the terms of a new takeover agreement that has approved by the boards of directors of both firms, the deal values Chicago-based PrivateBancorp at approximately $6.6 billion Cdn, or $60.92 US per share,

CIBC shares finished the day down $3.42, or almost three per cent, at $113.78 on the TSX, while shares of PrivateBancorp were up almost five per cent, climbing $2.80 US to close at $59 US on Nasdaq.

The two firms originally announced their takeover deal back in June 2016, but a shareholder vote on the agreement was put off after shares of PrivateBancorp rose above the offer price.

• CIBC to buy PrivateBancorp for almost $5B in friendly deal

"The amended terms agreed between CIBC and PrivateBancorp reflect changes to trading market conditions and the interest rate environment since we announced the transaction in June 2016 as well as PrivateBancorp's continued strong performance," James Guyette, the chairman of the board of PrivateBancorp, said in release.

"We continue to believe that a merger between CIBC and PrivateBancorp is a compelling opportunity that offers immediate and long-term value for PrivateBancorp stockholders," said  said Victor Dodig, CIBC's president and CEO.

Under the revised deal, CIBC is now offering $24.20 US in cash and 0.4176 of a CIBC common share for each PrivateBancorp share.

PrivateBancorp shareholders are expected to vote on the CIBC offer at a special meeting in mid-May.