P.M. BRIEFING : CS Holdings Chalks Up a First
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LONDON — CS First Boston Inc. said today it plans to sell an additional $300 million of its stock to CS Holdings, which already controls the giant Swiss bank Credit Suisse. The sale will raise CS Holdings’ stake in CS First Boston to about 60% from 44.5%, it said.
It is believed to be the first time that a foreign firm has taken majority ownership of a major U.S. investment bank. CS First Boston’s main U.S. subsidiary is First Boston Corp.
The stock sale is part of a financial restructuring that calls for CS First Boston to write off as much as $400 million in soured investments and rid itself of nearly $1 billion in troubled loans.
The investment bank said it will cut 200 employees out of 3,900 employees in North America by the end of the year. The company employs 5,800 people worldwide.
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