CIBC to Buy PrivateBancorp in Deal Valued at $3.8 Billion

CIBC announced a $3.8 billion acquisition of Chicago-based Private Bank Corp, marking its largest deal. The acquisition aligns with CIBC's strategy to expand in the US market, particularly in commercial and private banking. Despite the strategic fit, the market reaction was lukewarm due to concerns about the deal's impact on CIBC's capital levels and dividend growth. The acquisition is not expected to be profitable for three years, raising investor concerns. However, CIBC remains committed to maintaining its dividend range. The move reflects a broader trend of Canadian banks expanding into the US market.

What was the amount announced by the bank for the acquisition of the Chicago-based Private Bank?

What is the significance of the acquisition for CIBC according to the banking reporter?

How long had CIBC been working on the acquisition deal?

What is the expected timeline for the acquisition to start making money?

What concerns did investors have regarding the acquisition deal?