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May 4 (Reuters) - Canadian Imperial Bank of Commerce CM.TO raised its takeover offer for PrivateBancorp Inc PVTB.O for the second time, highlighting the company's desire to diversify into the U.S. market.
CIBC said on Thursday it would offer $27.20 in cash for each PrivateBancorp share, $3 more than its previous offer. It left the stock component of the offer unchanged at 0.4176 of its share. had raised its takeover offer for PrivateBancorp by 20 percent to about $4.9 billion in March, after some of the Chicago-based lender's shareholders opposed the initial bid. upon CIBC's last close of $79.58 on the New York Stock Exchange, the new offer values PrivateBancorp at about $4.9 billion - unchanged from the March 30 offer.
The total offer value has remained unchanged because CIBC's U.S.-listed shares have slipped nearly 10 percent since it last raised its bid for PrivateBancorp.
CIBC said on Thursday the latest bid was its "best and final offer to the PrivateBancorp stockholders".
PrivateBancorp shares have rallied since CIBC made its initial $3.8 billion offer last June and further since Donald Trump was elected U.S. president.
The stock has benefited from upbeat sentiment as investors counted on potential tax cuts, an easing in financial regulations and higher interest rates to boost the U.S. banking sector.
PrivateBancorp's shareholders must approve the deal in a vote on May 12.