Shares of PrivateBancorp (PVTB) rose in afternoon trading after the company announced this morning that it has entered into an amended merger pact with CIBC (CM).

WHAT'S NEW: Before the market open, CIBC and PrivateBancorp announced that they entered into an amended merger agreement following unanimous approvals by their respective boards. Under the amended deal, PrivateBancorp shareholders will receive $24.20 in cash and 0.4176 of a CIBC common share upon completion of the merger for each share of common stock of PrivateBancorp held. The companies noted that, based on yesterday's closing price $87.92 for CIBC's common shares, the amended agreement values PrivateBancorp at roughly $4.9B, or $60.92 per share, representing a 20% spike in value compared to the initial terms announced in June of 2016. The parties see the transaction closing in the second calendar quarter of 2017. Upon completion, CIBC expects the deal to contributed roughly $340M of net income in fiscal 2020 and become accretive to the company's earnings per share within three years of the closing date.

PREVIOUS TERMS: Under the original terms of merger agreement when it was first announced on June 29, 2016, CIBC agreed to pay $18.80 in cash and 0.3657 of a CIBC common share for each share of PrivateBancorp common stock. PrivateBancorp had postponed a vote on the offer in December after a rally in bank stocks following November's U.S. presidential election.

MOVE FOLLOWS KEEFE BRUYETTE UPGRADE: Earlier this week, Keefe Bruyette analyst Christopher McGratty upgraded PrivateBancorp to Outperform from Market Perform and raised his price target on the shares to $63 from $54.

PRICE ACTION: In afternoon trading, PrivateBancorp shares are up 5.4% to $59.22 while CIBC shares trading in New York are down 2.4% to $85.79.