Banks' share could rise to as much as 89.4%
Philadelphia Stock Exchange (PHLX) announced on 17 August
that Citigroup, Credit Suisse First Boston (CSFB), Morgan
Stanley and UBS have each acquired equity stakes in the
exchange, a move that is expected to be a major boost for the
PHLX said Morgan Stanley will invest $7.5m for 10% of the
total PHLX shares outstanding and also received a warrant to
increase its stake to 19.9%. Citigroup, CSFB and UBS,
meanwhile, will each invest $3.75m for 5% each of the total
PHLX shares outstanding. Those firms will also receive a
warrant for a nominal consideration to increase each stake up
to 9.9% if certain criteria are met.
The four firms join Citadel and Merrill Lynch, which each
took 10% equity stakes that could rise to 19.9% in June (see
FO Week Vol 10 No 25). Together, the six firms could
end up holding 89.4% of PHLX common stock.
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