×

Suisse clinches DLJ deal

$1.9 bil in stock opts for execs, 2,500 lower-level job losses expected

HOLLYWOOD — The parent of investment bank Credit Suisse First Boston announced Wednesday an agreement to acquire Wall Street rival Donaldson, Lufkin & Jenrette, currently controlled by Paris-based insurance group AXA, in a $11.5 billion cash and stock deal.

The agreement had been expected (Daily Variety, Aug. 30). Its terms also include some $1.9 billion in stock-option incentives for DLJ execs, an encouragement to stay after the takeover by Zurich-based Credit Suisse Group.

But the combination, which continues a consolidation trend among investment banks, is expected to result in up to 2,500 lower-level job losses, representing a potential 9% paring of the companies’ combined workforce.

AXA, the world’s biggest insurer, owns 71% of DLJ, with its publicly traded shares racing to new highs in the mid-$80 range in light of a deal in which DLJ shareholders would get $90 per share. AXA would get $8.14 billion in cash and Credit Suisse stock.

If completed, the transaction would combine a pair of investment powerhouses active in media and entertainment underwriting and mergers, as well as in other business segments.

Among DLJ’s biggest deals was last year’s $100 million insurance-backed securitization for fledgling Hollywood movie producer Destination Films. AXA also participated in that deal, which had come about amid an enthusiasm for insurance-backed film financings that’s since waned and even turned litigious in several instances.

(Bloomberg News contributed to this report.)

More Biz

  • Bert Salke and Jennifer Salke

    Feds Looked Into Amazon Studios Chief Jennifer Salke in College Admissions Scandal

    Federal investigators looked into Amazon Studios chief Jennifer Salke and her husband, Fox 21 Television Studios president Bert Salke, as they conducted a sprawling probe of cheating in elite college admissions, a source close to the case told Variety. It does not appear, however, that prosecutors will charge the Salkes in the case. The Salkes [...]

  • Variety Cord Cutting Placeholder Cable

    Big Blackout Looms as CBS, AT&T Go Down to Wire on Renewal Talks

    A blackout affecting CBS stations in major markets throughout the country looms as CBS and AT&T executives go down to the wire on negotiations for a retransmission consent deal covering 28 O&O stations. The sides have sparred publicly during the past few days as 11 p.m. PT Friday expiration of the previous contract approached. AT&T [...]

  • Contract Placeholder Business WGA ATA Agent

    ICM Responds to WGA Packaging Lawsuit: Claims are 'Baseless' and 'Absurd'

    ICM Partners has asked a judge to dismiss the lawsuit filed against four major talent agencies by the Writers Guild of America as part of the larger war between agencies and the guild over packaging fees on TV series and movies. The guild sued ICM, CAA, WME and UTA in California state court in April, [...]

  • New York City NYC Placeholder

    CityFM Podcast Takes a Deep Look at New York’s Music Scene (Listen)

    First among the many projects listed at the beginning of New York Music Month in June was a WNYE radio show and podcast called CityFM that promised to “explore the city’s music culture, emerging artists and trends, and upcoming events told through the lens of what’s happening around the city in Summer 2019.” And while [...]

  • Live Nation Logo. (PRNewsFoto/Live Nation)

    Live Nation Confirms Placing Tickets Directly on Secondary Market at Artists’ Request

    Representatives for Live Nation, the world’s largest live-entertainment company and owner of Ticketmaster, confirmed that it bypassed conventional channels and directly placed thousands of concert tickets on the secondary market upon artists’ request, in an article published in Billboard. In a statement shared with Variety, the company acknowledged that it has facilitated the transfer of [...]

  • Costume designer Michele Clapton

    Costume Designers Fashion a Plan to Fight for Pay Parity in Upcoming Contract Talks

    The Costume Designers Guild Local 892 is gearing up to fight for pay equity in its 2021 contract negotiations with the Alliance of Motion Picture and Television Producers, establishing a pay-equity committee to raise awareness of the scale disparity between the mostly female CDG membership and the mostly male membership of the Art Directors Guild Local [...]

More From Our Brands

Access exclusive content