Topic: How To Invest

The Successful Investor Hotline – Friday, March 31, 2017

Article Excerpt

CANADIAN IMPERIAL BANK OF COMMERCE, $114.67, Toronto symbol CM, has increased its takeover offer for Chicago-based PrivateBancorp Inc. (Nasdaq symbol PVTB). PrivateBancorp mainly lends to small and mid-sized businesses. It also provides wealth management services. In addition to Chicago, it operates in 11 other U.S. markets. In June 2016, CIBC originally offered to pay $3.8 billion U.S. (40% in cash and 60% in stock). However, PrivateBancorp stock has jumped 70% since the deal was announced and its shares now trade above that bid. This week, CIBC increased its offer to $4.9 billion U.S. (still 40% in cash and 60% in stock). The new bid is equal to 14% of the bank’s $45.4 billion (Canadian) market cap (the total value of all outstanding shares). Based on current prices, CIBC’s new offer is worth $60.20 U.S. a share. That slightly higher than PrivateBancorp’s current price of $59.37 U.S. PrivateBancorp’s shareholders will vote on the new offer in mid-May. If they approve, CIBC expects to complete the…