USA: CREDIT SUISSE GROUP TO BUY U.S. INVESTMENT BANK DLJ IN DEAL WORTH 13.7 BILLION (US) DOLLARS.

Record ID: 566157

  • Title: USA: CREDIT SUISSE GROUP TO BUY U.S. INVESTMENT BANK DLJ IN DEAL WORTH 13.7 BILLION (US) DOLLARS.
  • Date: 30th August 2000
  • Summary: NEW YORK, NEW YORK, UNITED STATES (FILE) (REUTERS) 1. CU: CREDIT SUISSE FIRST BOSTON (CSFB) LOGO 0.04 2. GV/PAN/CU: TRADING ON CSFB TRADING FLOOR (5 SHOTS) 0.29 NEW YORK, NEW YORK, UNITED STATES (AUGUST 30, 2000) (REUTERS) 3. MCU: (SOUNDBITE) (English) JOHN FORELLI, SENIOR VICE PRESIDENT AT INDEPENDENCE INVESTMENT ASSOC. SAYING "I would say the first thing that is surprising about that deal is probably the first combination we have seen in the investment banking sector where there is a lot of overlap between the two companies. DLJ, known primarily as a U.S. institutional firm, really caters a lot to the equities and fixed income side of the house for many institutional investors. Credit Suisse First Boston already has a big presence there so the driver of this combination will probably be a lot of cost cutting. As well as perhaps a little bit of top line synergy, but I'd say primarily cost cutting would be the focus of Credit Suisse First Boston" 1.07 4. GV/CU: DONALDSON, LUFKIN AND JENRETTE (DLJ) WEB SITE (3 SHOTS) 1.19 NEW YORK, NEW YORK, UNITED STATES (FILE) (REUTERS) 5. GV/MV: DLJ TRADING FLOOR (2 SHOTS) 1.26 NEW YORK, NEW YORK, UNITED STATES (AUGUST 30) (REUTERS) 6. MCU: (SOUNDBITE) (English) FORELLI ASKED IF THERE WILL BE MORE MERGERS OF THIS TYPE, SAYING: "Without a doubt, over the next six to twelve months we are going to see two or three deals announced" 1.30 7. GV/CU: DLJ (DONALDSON, LUFKIN & JENRETTE) EXTERIORS (3 SHOTS) 1.58 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 14th September 2000 13:00
  • Keywords:
  • Location: NEW YORK, NEW YORK, UNITED STATES
  • City:
  • Country: USA
  • Reuters ID: LVACZU3RCHC5TDSSAU41QOL9VOZ6
  • Story Text: Credit Suisse Group has announced it will buy U.S.

    investment bank Donaldson, Lufkin & Jenrette (DLJ) in a deal
    worth an estimated 13. 7 billion U.S. dollars to form a global
    investment banking powerhouse.



    The deal creates one of Wall Street's premier
    investment banks to rank alongside Merrill Lynch, Schroder
    Salomon Smith Barney, Morgan Stanley Dean Witter and Goldman
    Sachs.

    Switzerland's second-largest financial services group said
    it had agreed to pay 90 U.S. dollars per DLJ share, or 11. 5
    billion U.S. dollars. Sources close to the deal said it would
    pay a further 2. 2 billion U.S. dollars for outstanding options
    which Credit Suisse will issue to DLJ employees in exchange
    for options they already own.

    It will also set up a staff retention fund totaling 1. 2
    billion U.S. dollars to keep DLJ employees.

    John Forelli, Senior Vice President at Independence
    Investment Association said the overlap in business will lead
    to cost cutting.

    "I would say the first thing that is surprising about that
    deal is probably the first combination we have seen in the
    investment banking sector where there is a lot of overlap
    between the two companies. DLJ, known primarily as a US
    institutional firm, really caters a lot to the equities and
    fixed income side of the house for many institutional
    investors. Credit Suisse First Boston already has a big
    presence there so the driver of this combination will probably
    be a lot of cost cutting. As well as perhaps a little bit of
    top line synergy, but I'd say primarily cost cutting would be
    the focus of Credit Suisse First Boston," Forelli said.

    Credit Suisse First Boston (CSFB), the investment banking
    unit of Credit Suisse Group, is expected to derive the most
    immediate benefits from the move.

    DLJ is 71 percent owned by AXA Financial, itself owned by
    French insurance group AXA SA.

    AXA's shares hit a record high of 178. 5 euros in early
    trade in Paris, but then fell back to stand down 1. 7 percent
    at 169. 50 euros.


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