TORONTO — PrivateBancorp Inc. is delaying a shareholder vote on a proposed takeover of the company by Canadian Imperial Bank of Commerce (TSX:CM) that was set for Thursday.
The U.S. bank, which says it remains committed to the deal, says a new date for the meeting is expected to be set for early in the first quarter of next year.
PrivateBancorp says “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.”
Shares in PrivateBancorp in recent days have risen above the implied value of the stock-and-cash offer by CIBC.
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, which were established by both companies based on our analysis of the fundamental, long-term merits of the combination.”
CIBC CEO Victor Dodig says the bank continues to believe the cash and stock consideration in this transaction provides significant immediate and long-term value to PrivateBancorp shareholders.