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Canada's CIBC to buy PrivateBancorp in $3.8 billion deal

Staff writer |
Canadian Imperial Bank of Commerce (CIBC) will buy Chicago-based PrivateBancorp in a cash-and-stock deal valued at about $3.8 billions.

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PrivateBancorp's shares rose 26.5 percent to $45.46 in premarket trading on Wednesday, close to the offer price of $47 per share.

CIBC said the deal would also help it provide commercial and private banking services to the clients of Atlantic Trust, a wealth management firm it acquired in 2014.

"The transaction will significantly expand CIBC's reach in North America," the Canadian bank said.

PrivateBancorp will remain headquartered in Chicago and retain its Illinois state banking charter. The deal is expected to close in the first quarter of 2017.

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