SAN DIEGO, June 29, 2016 /PRNewswire/ -- Shareholder rights law firm Johnson & Weaver, LLP has launched an investigation into whether the board members of PrivateBancorp, Inc. (NASDAQ: PVTB) breached their fiduciary duties in connection with the proposed sale of the Company to Canadian Imperial Bank of Commerce (NYSE: CM) ("CIBC").
PrivateBancorp provides customized business and personal financial services to middle market companies, business owners, executives, entrepreneurs, and families in the United States.
On June 29, 2016, PrivateBancorp announced it had signed a definitive merger agreement with CIBC. Under the terms of the agreement, CIBC will pay US$18.80 in cash and 0.3657 of a CIBC common share for each share of PrivateBancorp common stock. Based on the June 28, 2016 closing price of CIBC's common shares on the New York Stock Exchange, the total transaction value is approximately US$47.00 of value per share of PrivateBancorp common stock at announcement. PrivateBancorp shareholders will be subject to the future volatility and price fluctuation of CIBC's stock. On this news, CIBC shares were trading down in pre-market.
The investigation concerns whether the PrivateBancorp board failed to satisfy their duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for PrivateBancorp shares of common stock. Nationally recognized Johnson & Weaver is investigating whether the proposed deal price represents adequate consideration; especially given that the price target for one Wall Street analyst is $49.00.
If you are a shareholder of PrivateBancorp and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-814-4471. If emailing, please include a phone number where you can be reached.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
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SOURCE Johnson & Weaver, LLP