Alpine Associates Opposes PrivateBancorp Merger
03 December 2016 - 6:38AM
Business Wire
Alpine Associates Management Inc., the investment manager for
entities which hold approximately 1,469,000 shares of
PrivateBancorp, Inc. (NASDAQ: PVTB), today announced that at this
time it intends to vote AGAINST PrivateBancorp's proposed stock and
cash acquisition by CIBC (NYSE:CM), as currently structured, at the
upcoming December 8, 2016 shareholder meeting. Since the U.S.
Presidential election, it is clear that the fundamental backdrop
for the regional banking industry has dramatically improved. The
prospect of higher interest rates, revised banking regulation and a
lower corporate tax rate caused the S&P Regional Banking ETF
(NYSE:KRE) to rise 19.2% from November 8th through November 30th,
while shares of PVTB only advanced 3.4% during this timeframe. From
June 28th (the day before the PVTB/CIBC transaction was announced)
through November 30th, KRE gained 43.2% while PVTB’s stock price
only rose 30.2%. We believe that any fair-minded view of
PrivateBancorp’s valuation suggests that its standalone value is
equal to or higher than the price currently being offered by
CIBC.
Alpine supports the recommendation of Institutional Shareholder
Services (“ISS”) that PVTB shareholders vote AGAINST the current
transaction.
Alpine Associates Management Inc. is a private investment
manager located in Englewood Cliffs, New Jersey.
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Alpine AssociatesTodd Mason, 201-871-0866