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CSFB to buy Brazil broker
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June 10, 1998: 7:09 a.m. ET
Swiss-American I-bank CS First Boston inks $675M deal to buy Banco Garantia
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NEW YORK (CNNfn) - CS First Boston said Wednesday it will buy Brazil's top investment bank, Banco Garantia, in a $675 million cash and stock deal.
The Swiss-American investment bank, a unit of Zurich-based Credit Suisse, said it will pay $200 million in cash and $475 million in Credit Suisse shares.
CS First Boston also offered a retention plan to some Garantia employees if the investment bank meets performance targets over the next three years.
A CS First Boston spokesman in New York said that target was for a 15-20 percent return on investment.
The buyout vaults CS First Boston, which already has operations in Brazil, to a top spot among investment banks in the hot emerging market, executives said.
The deal is expected to be completed in July, pending regulatory approval. Garantia, which is a partnership, will become a subsidiary of CS First Boston.
CS First Boston reportedly beat back bids from U.S. investment banks Goldman Sachs and Morgan Stanley Dean Witter in its offer for Garantia.
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CS First Boston
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