CIBC President and CEO Victor Dodig waits to speak before the company's annual and special meeting of shareholders in Vancouver, B.C., on Tuesday April 5, 2016. PrivateBancorp Inc. is delaying a shareholder vote on a proposed takeover of the company by Canadian Imperial Bank of Commerce that was set for today. THE CANADIAN PRESS/Darryl Dyck
December 07, 2016 - 5:27 AM
TORONTO - PrivateBancorp Inc. has delayed a shareholder vote on a proposed takeover of the company by Canadian Imperial Bank of Commerce (TSX:CM) that was set for Thursday.
The Chicago-based bank said it remains committed to the deal, but wants more time to consider the proposal.
Shares in PrivateBancorp in recent days have risen above the implied value of the stock-and-cash offer by CIBC.
"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 said in a statement Wednesday.
A new date for the meeting is expected to be set for early in the first quarter of next year.
Under the deal announced in June, CIBC had agreed to acquire PrivateBancorp for US$18.80 in cash and 0.3657 of a CIBC common share for each share of PrivateBancorp common stock.
The CIBC offer was worth nearly US$49 per share based on CIBC's stock price Tuesday. PrivateBancorp shares closed at US$52.14.
For its part, CIBC says it remains committed to the deal "on the agreed terms."
CIBC CEO Victor Dodig said the deal was agreed to by both companies based on an analysis of the fundamental, long-term merits of the combination.
"We continue to believe the cash and stock consideration in this transaction provides significant immediate and long-term value to PrivateBancorp shareholders," Dodig said in a statement.
"We look forward to continuing to work closely with PrivateBancorp to complete the transaction and realize the significant strategic benefits to both companies and their shareholders."
PrivateBancorp has about 1,200 employees and a presence in 11 U.S. markets in addition to Chicago. It has about US$17.7 billion of assets under management.
Note to readers: This is a corrected story. A previous version said the scheduled date of the PrivateBancorp shareholder vote was set for Wednesday.
News from © The Canadian Press, 2016