Share­hold­ers of Pri­vateBan­corp ap­prove takeover by CIBC

Bank sweet­ened orig­i­nal of­fer to gain sup­port of Chicago-based bank

The Hamilton Spectator - - BUSINESS -

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.

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