Shareholders of PrivateBancorp approve takeover by CIBC
Bank sweetened original offer to gain support of Chicago-based bank
CHICAGO — Shareholders of PrivateBancorp Inc. voted Friday to approve a takeover of the company by CIBC which twice-sweetened its bid in an effort to win support.
“The vote by the PrivateBancorp shareholders marks an important milestone in the process and we are very pleased with the outcome,” CIBC CEO Victor Dodig said.
“We look forward to continuing to work closely with the PrivateBancorp team to successfully complete the transaction and realize the full benefits for our shareholders, employees, clients and communities.”
The outcome of the vote had been uncertain, with shareholder advisory firm Institutional Shareholder Services recommending against the takeover.
PrivateBancorp said the transaction is still subject to customary closing conditions, including approval by banking regulators in the United States and Canada.
But both banks said they are confident that the remaining closing conditions will be satisfied in time to close the deal in June.
“This will make our strong bank even stronger with the same commitment to building long-term client relationships, the same experienced team, and the same dedication to Chicago and all of the communities we serve,” said PrivateBancorp CEO Larry Richman.
CIBC twice raised its stock-and-cash offer for the Chicago-based bank in recent weeks, bringing it to $6.8 billion last week.
Under the deal, PrivateBancorp shareholders would receive $27.20 US in cash and 0.4176 of a CIBC common share for each PrivateBancorp share they hold.
A shareholder vote on the deal had been scheduled for December but was postponed after shares of PrivateBancorp rose above the value implied in the proposed deal, which was announced last summer.
PrivateBancorp said at the time that its shareholders needed more time to consider the transaction.