CIBC And PrivateBancorp Amend Merger Agreement

(RTTNews) - CIBC (CM, CM.TO) and PrivateBancorp Inc.(PVTB) announced that they have entered into an amended merger agreement.

As per the Amended Agreement, PrivateBancorp stockholders will receive, upon completion of the proposed merger with CIBC, US$24.20 in cash and 0.4176 of a CIBC common share for each share of common stock of PrivateBancorp held.

Based upon yesterday's closing price of CIBC's common shares on the New York Stock Exchange (US$87.92), the Amended Agreement values PrivateBancorp at approximately US$4.9 billion (C$6.6 billion or US$60.92 per share), which represents a 20 percent increase in value compared to the initial terms announced on June 29, 2016.

The companies currently expect to close the transaction in the second calendar quarter of 2017. The transaction remains subject to customary closing conditions, including approval by PrivateBancorp's stockholders and by the federal banking regulators in Canada and the United States.

As previously announced, PrivateBancorp has set March 31, 2017, as the new record date for its special meeting of stockholders to consider and act upon the revised merger agreement. PrivateBancorp stockholders of record as of the close of business on March 31, 2017, will be entitled to vote at the Special Meeting, which is expected to take place in mid-May.