PrivateBancorp shoots through deal price as ISS says undervalued

|By:, SA News Editor

Institutional Shareholder Services says the $47 per share deal for CIBC (NYSE:CM) to purchase PrivateBancorp (PVTB +2.9%) undervalues the lender, and recommends shareholders vote against the sale.

The big advance in bank stocks since the election negates much downside risk to the shares should the sale be voted down, says ISS.

Today's gain brings the stock price to $48.15.

An owner of 1M shares of PVTB, Glazer Capital comes up with a price north of $50 per share using valuation methodologies similar to those employed by advisers Goldman Sachs and Sandler O'Neill.

For its part, PrivateBancorp says two other proxy advisors - Glass, Lewis, and Egan-Jones - are both recommending the deal.

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