Local News in Brief : Boston Firm Drops Out of Bond Deal
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First Boston Inc. withdrew Tuesday from a Los Angeles municipal bond deal to finance expansion of the Convention Center after Mayor Tom Bradley and City Council members objected that a majority stockholder in the firm does business in South Africa.
The investment banking firm was part of a syndicate of 11 investment firms purchasing $350 million in bonds to finance enlarging the center from 1.5 million to 4 million square feet. David Brodsley of the city administrative office said that the other investment houses will purchase the $60 million in bonds that First Boston had been scheduled to buy.
Bradley, in a letter to the council, said that Credit Suisse owns 44% of First Boston and has business in South Africa. That substantial ownership of First Boston, said Bradley, constitutes “control” of the American firm, as defined by the city Anti-Apartheid Contracting Ordinance.
First Boston’s decision to withdraw was announced as a City Council debate on the issue began.
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