Article Abstract:
Canadian Imperial Bank of Commerce (CIBC) is negotiating the acquisition of Ameritrade, the US' fifth-largest discount brokerage, for as much as $1.8 billion. CIBC is offering between $9 and $10 for each share of Ameritrade, which closed at $7.96 on May 10, 2001. The Canadian bank is reportedly buying Ameritrade to expand its presence in the US, particularly its Amicus electronic banking unit. On the other hand, Ameritrade lost $54.2 million during 2nd qtr 2001, down from a profit of $3.2 million during the year-ago period.
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Article Abstract:
Credit Suisse First Boston has entered into an agreement to purchase Donaldson Lufkin and Jenrette for $12.3 billion. The deal is expected to provide both investment banks with an improved chance of survival against the giant financial services firms. It will also give Credit Suisse First Boston with a stronger business in junk bonds, online trading and merchant banking. However, a large overlap in invvestment banking and research operations would require them to conduct layoffs from a combined staff of around 26,500.
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Anglo-Dutch food conglomerate Unilever dislodged Unilever as the biggest food company in the world when it acquired Best Foods for $20.3 billion. Both companies had combined revenues of $52.3 billion in 1999, which is bigger than Nestle's $49.7 billion. Aside from complementing each other's products, Unilever makes Lipton tea and Ragu sauces while Best Foods owns the Hellmann's mayonnaise and Skippy peanut butter brands, the deal is crucial in reviving Unilever's stock price.
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