Reuters - Video

Edition: US | UK | IN | CN | JP

Finance Videos

CIBC buys PrivateBancorp

Wednesday, June 29, 2016 - 01:01

Canadian Imperial Bank of Commerce's $3.8 billion purchase of Chicago-based PrivateBancorp will help it extend its reach into the U.S. market. Fred Katayama reports.

▲ Hide Transcript

View Transcript

CIBC is furthering its reach into the U.S. Canadian Imperial Bank of Commerce is buying PrivateBancorp for $3.8 billion, paying a 31 percent premium. PrivateBancorp is a Chicago-based commercial bank serving the middle market. The Canadian bank says its U.S. banking business will make up a tenth of profit and eventually rise to a quarter over time. PrivateBancorp shares zoomed higher in early trading but fell short of the offer price of $47 a share. RBC Capital Markets analyst Jon Arfstrom said, "Strategically and certainly financially, this seems to make sense for the company (PrivateBancorp)." The latest deal comes a half year after CIBC sold its stake in money manager, American Century Investments, to Nomura Holdings. Investors had been concerned that Canadian lenders have been overly reliant on the Canadian market, which has been hit hard by the drop in oil prices.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

CIBC buys PrivateBancorp

Wednesday, June 29, 2016 - 01:01