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Friday, July 15, 2011

CIBC expands US presence with American Century deal, (TSE: CM), (NYSE: JPM)

Canadian Imperial Bank of Commerce (CM.TO) is buying a minority stake in U.S. asset manager American Century Investments for $848 million, signaling its intention to step up its presence outside its home market. Canada's No. 5 bank said on Friday it would acquire 41 percent of Kansas City-based American Century, with $112 billion under management. The deal is expected to close in 90 days and will immediately add to earnings. The stake, currently owned by JPMorgan Chase & Co (JPM.N), gives Toronto-based CIBC geographic diversification and helps it expand its asset management offerings, which fall under its wealth management unit. "The transaction, although not big in and of itself, sends an unmistakable message that CIBC's board and senior executive team have broadened their strategic intent beyond Canada," said Peter Routledge, an analyst at National Bank Financial.

Canadian Imperial Bank of Commerce (CIBC) is a diversified financial institution. Shares of CM traded higher by 0.47% or $0.3672/share to $78.02. In the past year, the shares have traded as low as $62.31 and as high as $88.76. On average, 235595 shares of CM exchange hands on a given day and today's volume is recorded at 127317.

JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company. Shares of JPM fell by 1.44% or $-0.58/share to $39.77. In the past year, the shares have traded as low as $35.55 and as high as $48.36. On average, 32012500 shares of JPM exchange hands on a given day and today's volume is recorded at 27745856.