Takeover of CIBC delayed

Takeover of CIBC delayed

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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

NDP leader Rachel Notley is calling on the UCP to make a public inquiry into the COVID-19 outbreak at Olymel. (Facebook screenshot)
Notley calls for Olymel inquiry as plant reopens

Union also asks for further consideration to delay opening

Protesters
UPDATE: Rally held outside Red Deer court for slain central Alberta man

Tyler John Campbell charged with second-degree murder for December 2019 homicide

(Contributed image).
Deadline extended for arts scholarship applications for Red Deer-area students

Red Deer Arts Council will accept applications until March 15

Hog slaughter operations resumed on Thursday at Red Deer’s Olymel plant, which was closed for two weeks to curb the spread of COVID-19 among workers. Three employee deaths resulted from the latest outbreak. (Advocate file photo).
Hog slaughtering operations gear up again at Red Deer’s Olymel plant

Workers begin to return after 14-day closure due to COVID-19 outbreak

Alberta’s Chief Medical Officer of Health Dr. Deena Hinshaw says the greater lag time between first and second doses will allow more Albertans to be effectively vaccinated sooner. (File photo)
Alberta extends time between vaccine doses means more people to get shot sooner

National Advisory Committee on Immunization says doses can be to up to four months apart

Bryson, six, and Mara, eight, play with puppies from Dogs With Wings Saturday. (Photo by Sean McIntosh/Advocate staff)
WATCH: Dogs With Wings introduces Red Deer program

A program that trains puppies to be certified service, autism, facility and… Continue reading

Dr. Supriya Sharma, chief medical adviser at Health Canada, holds a press conference in Ottawa on Friday, Feb. 26, 2021. Canada’s chief medical adviser says her department is constantly receiving and reviewing any data on vaccines and COVID-19 variants and will be quickly ready to authorize needed boosters when they’re ready. THE CANADIAN PRESS/Sean Kilpatrick
Health Canada says vaccine boosters will be approved more easily

OTTAWA — Health Canada says it won’t require new clinical trial data… Continue reading

Unifor national president Jerry Dias speaks during a press conference in Toronto on Thursday, Oct. 15, 2020. Dias says Air Canada is pledging passenger refunds as negotiations over federal aid for airlines drag on. THE CANADIAN PRESS/Tijana Martin
Unifor’s Dias says Air Canada holding to refund pledge as aid negotiations drag on

OTTAWA — Unifor president Jerry Dias says Air Canada continues to promise… Continue reading

Lionel Desmond (front row, far right) was part of the 2nd battalion, of the Royal Canadian Regiment, based at CFB Gagetown and shown in this 2007 handout photo taken in Panjwai district in between patrol base Wilson and Masum Ghar in Afghanistan. THE CANADIAN PRESS/HO-Facebook-Trev Bungay MANDATORY CREDIT
Desmond inquiry: social worker reveals details about former soldier’s family life

PORT HAWKESBURY, N.S. — An inquiry in Nova Scotia is hearing testimony… Continue reading

Seniors arrive for their COVID-19 vaccination at a clinic in Olympic Stadium in Montreal on March 3, 2021. THE CANADIAN PRESS/Paul Chiasson
Nova Scotia eases COVID-19 restrictions; cases creep up in Ontario

Nova Scotia is easing public-health restrictions in and around Halifax, while new… Continue reading

Infrastructure and Communities Minister Catherine McKenna stands near a bus as she waits to start an announcement at a public transit garage in Ottawa, Thursday March 4, 2021. THE CANADIAN PRESS/Adrian Wyld
Liberals tap $2.5B of promised transit dollars for zero-emission buses

OTTAWA — The federal Liberals are setting aside some of the billions… Continue reading

Canada’s Eliot Grondin looks on after competing in a men’s snowboard cross heat at the Phoenix Snow Park at the 2018 Winter Olympic Games in Pyeongchang, South Korea, Thursday, Feb. 15, 2018. Grondin continued his strong season with his first career World Cup snowboard cross victory on Thursday. THE CANADIAN PRESS/Jonathan Hayward
Canadian Eliot Grondin captures gold at World Cup snowboard cross event

BAKURIANI, Georgia — Canada’s Eliot Grondin continued his strong season with his… Continue reading

Most Read