A lawsuit was filed for investors in shares of PrivateBancorp Inc (NASDAQ:PVTB) in connection with the proposed takeover was announced and NASDAQ:PVTB stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 07/14/2016 -- The Shareholders Foundation announced that an investor, who currently holds shares of PrivateBancorp Inc (NASDAQ:PVTB), filed a lawsuit against the buyout of PrivateBancorp Inc by CIBC for a value of approximately $47 per share.
Investors who purchased shares of PrivateBancorp Inc (NASDAQ:PVTB) and currently hold any of those NASDAQ:PVTB shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:PVTB stockholders by agreeing to sell PrivateBancorp Inc too cheaply via an unfair process to CIBC.
On June 29, 2016, CIBC announced that it has entered into an agreement to acquire PrivateBancorp, Inc. and its subsidiary. Under the terms of the transaction CIBC will pay US$18.80 in cash and 0.3657 of a CIBC (TSX: CM) (NYSE: CM) 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 (US$77.11), the total transaction value is approximately US$3.8 billion (C$4.9 billion) or US$47.00 of value per share of PrivateBancorp common stock at announcement.
However, plaintiff claims that the proposed consideration NASDAQ:PVTB shareholders will receive is grossly inadequate and undervalues PrivateBancorp Inc. In addition, the plaintiff alleges that the process is also unfair to NASDAQ:PVTB stockholder.
Shares of PrivateBancorp Inc (NASDAQ:PVTB) closed on July 13, 2016 at $44.08 per share.
Those who are current investors in PrivateBancorp Inc shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego