Credit Suisse First Boston (CSFB) is to acquire the 18,400,000 shares (approximately 17% interest) of CSFBdirect common stock owned by the public for $6 per share in cash, a total of approximately $110 million.
The offer represents a premium of approximately 28% over the closing price of CSFBdirect stock on July 10, 2001 on the New York Stock Exchange.
The transaction has been unanimously approved by the special committee of the board of directors of CSFB (USA). The offer is not subject to a minimum number of shares having been tendered but is subject to customary conditions for transactions of this type.
Within ten working days, CSFB will start a cash tender offer for all of the CSFBdirect stock owned by the public. The transaction is expected to close in the third quarter of 2001.
The transaction will provide CSFB (USA) with additional flexibility in operating the CSFBdirect business. It will reduce administrative costs and related expenses and offer greater flexibility in allocating assets and liabilities among its various businesses.