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PrivateBancorp Delays Meeting: Will CIBC Raise Bid Price?

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PrivateBancorp, Inc. once again deferred its special shareholder meeting, which was scheduled to be held in the first quarter of 2017, to take votes regarding the takeover by Canadian Imperial Bank of Commerce (CM - Free Report) . The meeting is now expected to be held on or around May 4, 2017.

The deal was entered on Jun 29 for a total value of $3.8 billion or $47 per Private Bancorp’s shares. According to the original agreement, Canadian Imperial would pay $18.80 in cash and 0.3657 of its share for each PrivateBancorp share.

However, the Chicago-based bank is probably rethinking its strategy, as various promises made by Donald Trump regarding fewer taxes, higher interest rates and reduced regulatory pressures are likely to significantly benefit the U.S. finance companies.

Moreover, the improving market scenario has led shares of most of the companies to rise since the elections.

Notably, PrivateBancorp shares have gained approximately 27% post the Presidential elections. Shares of PrivateBancorp closed at $57.42 on Mar 7, so the original deal price of $47 looks unfavorable now.



Therefore, many shareholders of the company are contemplating if the deal will be profitable or not. Hence, they need time to think before casting their vote.

Also, this move will give Canadian Imperial more time to decide whether or not it should sweeten its original offer to acquire PrivateBancorp.

Currently, PrivateBancorp sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

A couple other stocks in the same space worth considering are Associated Banc-Corp (ASB - Free Report) and Enterprise Financial Services Corp (EFSC - Free Report) . Both currently carry a Zacks Rank #2 (Buy).

Associated Banc-Corp has witnessed an upward earnings estimate revision of 2.2% for the current year over the last 60 days. Moreover, its shares have gained approximately 27% in the last six months.

Enterprise Financial’s current year earnings estimates have been revised 3.6% upward over the last 60 days and its share price has gained 39.4% in the last six months.

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