DLJ Share Surge on Merger Reports
NEW YORK (AP) _ Credit Suisse First Boston tentatively has agreed to acquire New York-based Donaldson, Lufkin & Jenrette Inc. for $90 a share, or $11.5 billion, nearly three times the company’s book value, according to a report.
The deal was reported by The Wall Street Journal on Wednesday
Citing people ``familiar with the discussions,″ the Journal reported that DLJ was able to get $90 a share because of ``the interest expressed by other firms, J.P. Morgan, Lehman Brothers and Chase Manhattan Corp.″
On Tuesday, neither company immediately returned phone calls seeking comment about an earlier report in the Journal. In response to a query from the New York Stock Exchange, DLJ said it was its policy ``not to comment on unusual market activity.″
A spokeswoman for New York financial services company Axa Financial, which holds a majority stake in DLJ, also could not immediately be reached for comment. Axa Financial is a subsidiary of Paris-based insurance giant Axa.
Credit Suisse First Boston is the investment banking subsidiary of Zurich-based Credit Suisse Group.
On Tuesday, shares of DLJ were up $16.44, or 25 percent, to close at $82.25 on the New York Stock Exchange.
Shares of DLJdirect Inc., the company’s online brokerage, were also up $2.25, or 28 percent, to close at $10.19 on the New York Stock Exchange.