Aug. 29, 2000: The Deal newsroom was a giddy place six years ago as the paper prepared to go to print announcing Credit Suisse First Boston's plans to buy Donaldson, Lufkin & Jenrette for $11.5 billion ahead of rival publications. At the time, the deal was the second largest broker/dealer transaction announced in the past two years, which was a period of intense dealmaking in the investment banking sector (see table below). CSFB agreed to pay a whopping $90 per DLJ share, which was three times book value. Of course, The Deal got ahead of itself, and a few days later tried to handicap who was next to be acquired.
Now, the Street is buzzing about who'll be the next in play, and brokerages like A.G. Edwards & Sons, Lehman Brothers and Legg Mason are on the short list. Also, expect the taking out to be done by the likes of Chase Manhattan Corp., ABN AMRO and HSBC - all rumored to have been suitors of DLJ.
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Of course, the only aforementioned company to partner with another bank was Chase, which about two weeks later agreed to buy J.P. Morgan for $33 billion. The two deals would be the last of the major investment banking mergers before the 2001 recession and 9/11 attacks. —Matthew Wurtzel
Largest Broker/Dealer M&A Transactions by Deal Value
from July 1, 1999 to August 30, 2000 |
| Acquirer |
Target |
Announced
Date |
Deal Value |
| UBS AG |
Paine Webber Group Inc. |
7.13.00 |
$12.2 Billion |
| Credit Suisse First Boston |
Donaldson, Lufkin & Jenrette |
8.30.00 |
$11.5 Billion |
| Chase Manhattan Corp. |
Robert Fleming Holdings |
4.12.00 |
$6.9 Billion |
| Alliance Capital Management Holding LP |
Sanford C. Bernstein & Co. Inc. |
6.21.00 |
$3.5 Billion |
| Citigroup Inc. |
Schroders' investment banking unit |
1.19.00 |
$2.2 Billion |
| Chase Manhattan Corp. |
Hambrecht & Quist Group |
9.28.99 |
$1.3 Billion |
| Merrill Lynch & Co. Inc. |
Herzog Heine Geduld Inc. |
6.07.00 |
$913 Million |
| H&R Block Inc. |
OLDE Financial Corp. |
9.02.99 |
$875 Million |
| Paine Webber Group Inc. |
J.C. Bradford & Co. LLC |
4.29.00 |
$620 Million |
| Goldman Sachs Group Inc. |
Hull Group Inc. |
7.13.99 |
$531 Million |
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