Credit Suisse merger plan

Press, 12 October 1988, Page 37

Credit Suisse merger plan

NZPA-Reuter New York European banking giant. Credit Suisse, will emerge as the foreign concern with the biggest presence on Wall Street after a planned SUSI.I billion (SNZI.BB) merger of one of its affiliates with the U.S. investment firm, First Boston Inc. In a complicated three-way deal announced over the week-end, First Boston, a leading securities trader and merger adviser, will be bought by a group that includes First Boston’s employees, Credit Suisse and an unidentified third party. Its operations will be joined with London-based Credit Suisse-First Boston, a international bond dealer now owned jointly by Credit Suisse and First Boston. The companies said that the object of the merger was to create a global investment banking giant. “First Boston, CSFB and Credit Suisse are taking a decisive step forward to create a powerful worldwide firm,” said First Boston and Credit Suisse in a joint statement. The new privately-owned company is to be called CS First Boston and will be headed first by First Boston’s chief, Mr Peter Buchanan. The ownership breakdown of CS First Boston will be: 44.5 per cent Credit Suisse, 25 per cent management employees of First Boston and Financiere Credit SuisseFirst Boston, and 30.5 per cent by unnamed third party investors. The new CS First Boston will be a finance industry heavyweight active worldwide in everything from raising capital and merchant banking through mergers and takeovers to selling and trading in securities.