PrivateBancorp WOW! Chicago based PrivateBancorp just got a revised takeover offer from CIBC for, get this, $4.9 Billion. That's up 20% from their last offer which was rejected. That's how the Chicago boys & girls trade. The deal looks scheduled to close in the 2nd quarter. Yeah, we know its not exactly a fintech story (although they have some very cool investing calculators on their website), but with years in the Chicago financial community we just had to run this piece. Trade em up.

(Bill Taylor/CEO)

"Following unanimous approvals by their respective boards of directors, CIBC (TSX: CM) and PrivateBancorp, Inc. today announced that they have entered into an amended merger agreement (the "Amended Agreement").

Under 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 Amended Agreement values PrivateBancorp at approximately 2.7 times tangible book value as of

December 31, 2016

. J

ames Guyette

, Chairman of the Board of PrivateBancorp, said, "We are pleased to announce the revised terms of our proposed transaction with CIBC, which provides our stockholders with a significant increase in value as compared to the initial terms of the transaction. The amended terms agreed between CIBC and PrivateBancorp reflect changes to trading market conditions and the interest rate environment since we announced the transaction in

June 2016

as well as PrivateBancorp's continued strong performance. Our Board believes in the long-term strategic value of the combination and, after careful consideration, unanimously supports the amended terms and continues to recommend that PrivateBancorp stockholders approve the transaction." "We are pleased to have reached an amended agreement with PrivateBancorp," said

Victor G. Dodig

, CIBC President and Chief Executive Officer. "The quality of its management team and its focus on building a client-first culture make PrivateBancorp an excellent fit with CIBC."
Additional Transaction Details The total value of the consideration that PrivateBancorp common stockholders will receive upon the closing of the transaction will be based in part on the value of CIBC common shares at closing. CIBC will satisfy aggregate consideration payable to PrivateBancorp stockholders by paying approximately US$1.9 billion (C$2.6 billion) in cash and issuing approximately 33.5 million CIBC common shares, representing an approximately 40 per cent cash and 60 per cent stock mix. CIBC estimates that the completion of transaction will contribute approximately US$340 million (C$450 million) of net income in fiscal 2020 and become accretive to CIBC's earnings per share within three years of the closing date. CIBC expects to maintain a strong Common Equity Tier (CET) 1 ratio at closing above 10 per cent. CIBC's CET 1 ratio was 11.9 per cent as at January 31, 2017." Source: PR Newswire