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Oppenheimer finds buyer?
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June 6, 1997: 7:42 a.m. ET
CIBC Wood Gundy looks at buying Wall Street brokerage for $500 million
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NEW YORK (CNNfn) - Brokerage firm Oppenheimer & Co. may have lined up another buyer in its as-yet unsuccessful bid to sell itself.
The Wall Street firm is in talks to be acquired by Canada's CIBC Wood Gundy Securities Corp. for about $500 million, the Wall Street Journal reported Friday.
No agreement has yet been reached with the brokerage unit of the Canadian Imperial Bank of Commerce but people familiar with the talks say the acquisition has been reviewed by the board of CIBC's parent company.
Spokesmen for both firms declined to comment on the matter.
The closely-held Oppenheimer has been trying to find a buyer for two years. Negotiations with Germany's Bayerische Vereinsbank AG and Dutch bank ING Group got into the late stages before falling apart.
More recently, Oppenheimer came close to a $500 million agreement with PNC Bank Corp. last month before negotiations broke down.
The move is the latest in a trend of attempts by U.S. and overseas banks to gain a foothold in the U.S. securities business. Last month, SBC Warburg announced plans Thursday to buy Wall Street's Dillon Read & Co. for $600 million.
Investment banks believe that in order to become a strong competitor globally, they need to have a presence in the United States securities industry.
Even if the deal goes through CIBC, which has been looking to beef up its U.S. position, will not be a major power player on Wall Street. Oppenheimer, with equity capital of $320 million, does not rank in the top 30 brokerage firms. Its estimated pre-tax profit of $70 million for fiscal 1997 is also far from profits seen by larger firms. 
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Oppenheimer & Co.
CIBC
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