PrivateBancorp shares spike 23% after Canadian Imperial Bank buyout deal

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PrivateBancorp shares spiked 23 percent Wednesday after it announced a buyout agreement with the Canadian Imperial Bank of Commerce (CIBC).

CIBC will pay about $3.8 billion in cash and stock for PrivateBancorp, it said in a statement.

"The transaction will significantly expand CIBC's reach in North America, and enable PrivateBancorp to continue building on its record of growth and client service under the leadership of its current management team," CIBC said in a statement.

"We believe this transaction allows us to not only continue our success but to achieve even more as our clients benefit from CIBC's financial strength, and our employees become part of a respected North American organization that shares our values and is strategically positioned for long-term growth," said Larry Richman, PrivateBancorp's president and CEO.

Shares of PrivateBancorp have climbed nearly 8 percent this year.