Topic: How To Invest

The Successful Investor Hotline – Friday, May 5, 2017

Article Excerpt

CANADIAN IMPERIAL BANK OF COMMERCE, $108.67, Toronto symbol CM, is Canada’s fifth-largest bank, with total assets of $513.3 billion. This week, CIBC raised 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). In March 2017, it increased the offer to $4.9 billion U.S. (still 40% in cash and 60% in stock). However, PrivateBancorp’s shares continue to trade above that bid. CIBC’s new offer is still worth a total of $4.9 billion U.S. However, PrivateBancorp investors will now receive 45% of the offer in cash and 55% in stock. CIBC would also adjust the timing of its June 2017 dividend so that PrivateBancorp investors receive the payment. Based on current prices, the bank’s new offer is worth $60.43 U.S. a share. That’s…