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   Non-TechCSFB Direct(DIR)

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To: Susan G who wrote (386)8/29/2000 7:29:44 PM
From: solstice
   of 406
DLJ to be bought out?

Buying Strength: DLJ a Tempting Target
By Dan Colarusso
Associate Editor
8/29/00 7:11 PM ET

If Donaldson Lufkin & Jenrette (DLJ:NYSE - news) does strike a deal to be acquired, its new owner will get a firm that has spread itself into many of Wall Street's most lucrative businesses.

The takeover action on Wall Street recently has been focused on firms with lots of brokers catering to retail investors, namely UBS' (UBS:NYSE ADR - news) July agreement to acquire PaineWebber (PWJ:NYSE - news).

But DLJ, which is reportedly in talks to be acquired, has become a force in several areas. It's the seventh-largest U.S. investment bank, one of the largest trade execution and clearing firms and the seventh-largest online brokerage. It also has about 500 brokers servicing wealthy individual investors. What it lacks, however, is a huge asset-management business that generates a steady stream of fee revenue to offset the more cyclical investment banking and trading businesses.

Still, DLJ's majority shareholder, AXA Financial (AXF:NYSE ADR - news) of France, is reportedly soliciting bids for the firm and getting a strong response. AXA, the world's largest insurance company, owns about 70% of DLJ.

DLJ and AXA didn't return calls seeking comments.

It's unclear what a buyer would pay for DLJ, though CNBC reported it would fetch $90 a share. UBS is paying about 18 times PaineWebber's estimated earnings this year. Trading at $86.50, up 31%, or $20.94, Tuesday, DLJ already is near that level, so there may be limited upside potential from here.

"Typically, you see stronger firms buying somewhat weaker ones, but in the case of DLJ, it's a strong firm that's getting acquired," says one Wall Street veteran.

"DLJ has chosen its business spots extremely well, and then executed its plans well," says money manager Michael Holland, who doesn't hold shares of DLJ in his Holland Balanced fund. "You tend to think that when DLJ decides to partner up with someone -- knowing its history -- the firm will do something smart."

Among the rumored suitors are Credit Suisse First Boston and Lehman Brothers (LEH:NYSE - news). Credit Suisse First Boston and Lehman declined to comment.

CS First Boston ranks fourth among U.S. equity underwriters, according to CommScan Equidesk, but an acquisition of DLJ would make it bigger and more diverse. It's best known for its technology investment-banking franchise, a unit which, under the guidance of Frank Quattrone, has become a Silicon Valley force.

CS First Boston and many other investment-banking firms also are on the hunt to add low-cost distribution to individual investors to their mixes. The combination of DLJ unit DLJDirect's (DIR:NYSE - news) online business and DLJ's boutique brokerage, which caters to wealthy individuals, could be a pipeline through which an investment bank could pump valuable initial public offering business.

Meanwhile, the specter of DLJ being acquired is likely to add even more fuel to the sector's M&A bonfire. Lehman and Bear Stearns (BSC:NYSE - news) have been among the most talked-about targets.

Both firms are similar in makeup to DLJ, although with a market cap of $17 billion Lehman is considerably larger. DLJ's market cap is about $12 billion, while Bear's is just under $7 billion. The stocks have run up considerably. Lehman shares have risen about 60% since May 1, while Bear's stock has popped about 40% since then. With Tuesday's performance, DLJ shares have almost doubled in that period.

Not everyone's sold. Goldman Sachs brokerage analyst Richard Strauss warned in a report last week that investors should "avoid the takeout trap -- which in this category typically is a dud."

Well, maybe not this time.


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To: Susan G who wrote (386)8/29/2000 9:18:50 PM
   of 406
Im glad you got out at thirty, I sold some and am in for a free ride, but the ride has been hectic. Im curious if this will be more of a spike than the original ipo. ?

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To: solstice who wrote (387)8/29/2000 9:19:34 PM
From: Henry Niman
   of 406
CNBC broke story at about 5:40

Faber says $90 buyout a done deal

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To: Henry Niman who wrote (389)8/30/2000 8:43:15 AM
From: Rob C.
   of 406
We are not included in the deal.

30 Aug 08:35

Shareholders of Donaldson Lufkin & Jenrette, which is 70% owned by AXA
Financial Inc. (AXF), will receive cash for their stock. AXA and its affiliates
will receive $5.75 billion in Credit Suisse Group stock and $2.39 billion in

The aquisition doesn't include various issues of DLJ preferred stock, debt
and the tracking stock of DLJdirect Inc. (DIR).

Donaldson Lufkin has 127.8 million shares outstanding.

08:35 AM

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To: Rob C. who wrote (390)8/30/2000 8:55:02 AM
From: Henry Niman
   of 406
DIR will continue as tracking stock.
CNBC update

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To: Henry Niman who wrote (391)8/30/2000 9:13:42 AM
From: Rob C.
   of 406

I like this...

Credit Suisse First Boston could benefit from the deal in several ways. Not only will the acquisition boosts its U.S. presence, it also would be helped by DLJ's strength in high-yield bonds.

On Tuesday, DLJ's stock (DLJ: news, msgs) reached a 52-week high of 82 1/4, up 16 7/16 on volume of more than 6 million shares.

DLJdirect (DIR: news, msgs), a tracking stock for DLJ's online operation, also posted a big gain, rising 2 1/4, or 28 percent, to 10 3/16 as of 4 p.m. Eastern time.

To some observers, suitors might view DLJdirect, an established online service, as one of the brokerage's biggest assets.

Analysts have said the speculation about DLJ itself gained currency because it followed a period when PaineWebber agreed to be acquired by UBS and Bear Stearns said it might be looking for a suitor of its own.

Those developments have been seen as a prelude to what could turn into a new buying spree of securities firms.



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To: Henry Niman who wrote (391)8/31/2000 4:09:57 PM
From: Rob C.
   of 406
=DJ POINT OF VIEW: Is Renaming DLJdirect Counterproductive?

31 Aug 13:49

By Gene Colter
A Dow Jones Newswires Column

NEW YORK (Dow Jones)--Imagine you have a young but high-profile business with
nearly 1 million customers.

Now figure that you spent roughly $250 to lure each of those customers for a
total of $250 million. A lot of that figure represents advertising campaigns to
get your name out there so that people remember it.

What's your next move? Why, change your name, of course.

Sound odd? That's what the new owner of DLJdirect Inc. (DIR) may be planning,
though the parent appears to be debating the rechristening of the online

Credit Suisse Group (Z.CSG) Chairman and Chief Executive Lukas Muhlemann sent
a letter to shareholders Thursday saying DLJdirect will become CSFBDirect as
part of the $11.5 billion transaction in which Credit Suisse will acquire
Donaldson, Lufkin & Jenrette Inc. (DLJ). But Muhlemann later said in a
conference call that the unit wouldn't be rebranded. Credit Suisse' Chief
Financial Officer Richard Thornburgh further muddied the issue by saying
there's a "high likelihood" of rebranding but later adding Credit Suisse would
ultimately do "what is in the best interest of shareholders," according to a
report by Dow Jones Newswires' Cheryl Winokur Munk.

Herewith, some advice to Credit Suisse on the matter.

As everyone on Wall Street knows, CSFB stands for Credit Suisse First Boston,
the investment-banking business created when First Boston merged with Credit
Suisse back in the late 1980s.

But Wall Streeters know just as well the history of DLJ, a venerable name
that had begun to gain some recognition on Main Street, too, in the guise of
DLJdirect. (The example at the top of this column is at least somewhat based on
real numbers: By the latest reckoning, the Web broker has about a million
accounts worldwide. In the first quarter, the firm spent an average of around
$262 to capture each new account, according to a Salomon Smith Barney analyst.)
Wall Street may grumble, but it can adapt.

No disrespect to Main Street, but the average consumer doesn't do as well
with change, and you have to figure that hanging a new sign on DLJ's brokerage
business will at least lead to confusion in the minds of some customers and
potential customers.

To be sure, the alternative - keeping the DLJdirect name - might look odd
when you consider that Credit Suisse has its name on most everything else in
its empire. Indeed, the new CSFB/DLJ operation will be called simply Credit
Suisse First Boston.

But, though the image managers and spin doctors might have you believe
otherwise, there's still a difference between the way institutions and end
customers accept some kinds of change.

Many companies with a consumer brand acknowledge this when renaming after a
takeover or merger. For example, Germany's Daimler made sure to keep the word
"Chrysler" after it bought the company. It did so because it knew the average
customer would take more readily to DaimlerChrysler than Daimler-Benz and
associate (hopefully) good feelings about the Chrysler product with the new

No one is suggesting that DLJdirect is anywhere near the brand that one of
the Big Three automakers is. In fact, those million accounts rank it only as
No. 7 in the online brokers field, according to Salomon Smith Barney estimates.

But building a brand means sticking with the name or coming up with a
powerful catalyst to establish the new handle in the public's mind.

And sometimes that catalyst isn't always a happy one. Just ask Verizon
Communications (VZ), whose creation from the merger of GTE and Bell Atlantic
was something of a mystery - sorry, James Earl Jones - before its labor
problems made headlines.

Meantime, back on Wall Street, investors who own any of the 12% of DLJdirect
tracking stock that DLJ offered in May 1999 have their own problems, but not
because of any potential name change.

Their stocks got left out of the CSFB/DLJ deal and will continue to trade
separately. Shares of DLJdirect debuted at $20, hit a high $40 and now trade at
less than $9. The only thing these holders may get is a new ticker symbol.

-By Gene Colter, Dow Jones Newswires 201.938.2068
01:49 PM

Copyright 2000 Dow Jones & Company, Inc.

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To: Henry Niman who wrote (391)9/25/2000 8:14:10 AM
From: Rob C.
   of 406
JERSEY CITY, N.J.--(BUSINESS WIRE)--Sept. 25, 2000--

-- Self-Directed Brokerage Option Allows
Expanded Investment Choices Within 401(k) Plans --

DLJdirect Inc. (NYSE:DIR.N), the online brokerage service of
Donaldson, Lufkin & Jenrette, Inc. (NYSE:DLJ.N), and MFS Retirement
Services, today announced an agreement to offer DLJdirect brokerage
services to participants in 401(k) plans administered by MFS. Under
the agreement, DLJdirect will provide self-directed brokerage account
(SDBA) services within MFS's participant-directed, employer-sponsored
retirement plans.
Clients of MFS retirement plans who meet certain criteria may
choose the SDBA option. They will have access to a range of investment
products and services offered by DLJdirect. The complete package of
offerings includes trading in stocks, mutual funds, IPOs (for
qualified investors), real-time quotes and news, and extensive
research. Participants may access their accounts 24 hours a day, seven
days a week. DLJdirect is available across a variety of platforms,
including the Internet and wireless devices. Telephone access is
available via TradeTalk, DLJdirect's touch-tone trading system, or by
calling a DLJdirect registered Investor Service Representative.
The agreement with MFS marks the third major agreement DLJdirect
has signed in the last four months with 401(k) plan administrators
offering a full range of brokerage services to participants in
employer-sponsored retirement plans.
"MFS is very pleased to join forces with DLJdirect, one of
America's premier online brokerage firms, to provide our 401(k)
clients with self-directed brokerage accounts," said Martin E.
Beaulieu, President of MFS Retirement Services, Inc., a subsidiary of
MFS Investment Management.(R) MFS Retirement Services has more than
$18.6 billion in retirement assets and an account base of more than
725,000 participants nationally as of June 30, 2000.
"We welcome this opportunity to provide our award-winning
brokerage services to MFS plan participants," said Blake Darcy, Chief
Executive Officer of DLJdirect. "The combined resources of MFS and
DLJdirect will provide 401(k) plan participants with access to a more
diverse package of products and services and the exemplary service
that MFS clients have come to expect."

About MFS Investment Management

MFS invented the mutual fund. The firm's history dates back to
March 21, 1924, and the establishment Massachusetts Investor's Trust,
the fund that was at the beginning of an industry that brought the
power of investing to every American. MFS manages more than $150
billion in assets on behalf of five million investors worldwide as of
June 30, 2000. MFS Retirement Services, Inc. offers investors a full
array of retirement plans with an emphasis on defined contribution
plans and IRAs. The company's plans are fully supported by dedicated
client service teams, state-of-the-art record keeping and
administrative systems, and voice and Internet technology. The company
also has experienced a 55 percent growth in retirement assets during
the two-year period between January 1997 and December 1999, and a
client retention rate of 98.5 percent.

About DLJdirect

DLJdirect is one of the world's premier online brokerage firms
offering a diversified range of investment products and services to
sophisticated, self-directed investors. As of June 30, 2000, DLJdirect
had nearly one million worldwide customer accounts representing nearly
$28 billion in assets. Headquartered in Jersey City, NJ, with offices
in Parsippany, NJ, Charlotte, NC, Delray Beach, FL, Sandy City, UT,
London, Tokyo, Hong Kong, and Dubai, DLJdirect employs more than 1,500
people. DLJdirect trades on the New York Stock Exchange under the
ticker symbol "DIR" as a tracking stock of Donaldson, Lufkin &
Jenrette. For more information on DLJdirect, visit the company's Web
site at

About Donaldson, Lufkin & Jenrette

Donaldson, Lufkin & Jenrette (DLJ), is a leading integrated
investment and merchant bank serving institutional, corporate,
government and individual clients. DLJ's businesses include securities
underwriting; sales and trading; investment and merchant banking;
financial advisory services; investment research; venture capital;
correspondent brokerage services; online, interactive brokerage
services; and asset management. Founded in 1959 and headquartered in
New York City, DLJ employs approximately 11,300 people worldwide and
maintains offices in 13 cities in the United States and 16 cities in
Europe, Latin America and Asia. The company has two classes of common
stock trading on the New York Stock Exchange. Shares trading under the
ticker symbol "DLJ" represent Donaldson, Lufkin & Jenrette, Inc.
Shares trading under the ticker symbol "DIR" track the performance of
DLJdirect, its online brokerage business. For more information on
Donaldson, Lufkin & Jenrette, refer to the company's World Wide Web
site at The firm's world headquarters are located at 277
Park Avenue, New York, NY 10172.


CONTACT: Press Contacts:
DLJdirect Inc.
Charlotte Fox
MFS Investment Management
David Oliveri
G.S. Schwartz & Co. Inc.
William Armstrong
212/725-4500, ext. 304
Investor Contact:
Donaldson, Lufkin & Jenrette
Kevin Zuccala


Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.

Copyright 2000, Business Wire

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To: Rob C. who wrote (394)3/26/2001 12:13:04 PM
From: BWAC
   of 406
Any DIR stockholders and account holders who want to continue to do business with CSFB step right up? They will take your DIR now for $4. Thanks a bunch. I'll be gone as a customer. Customer Service 101----Don't screw them over. CSFB should have done the right thing and taken this step at the same time they bought DLJ and for a similarly valued price. But nope, there were people to be taken advantage of. Think about that when you make your next (and hopefully) last trades with CSFB.

Monday March 26 11:38 AM ET
CSFB to Buy the Balance of CSFBdirect

NEW YORK (Reuters) - Investment bank Credit Suisse First Boston said on Monday it would buy the balance of the outstanding shares of its online brokerage unit CSFBdirect (NYSE:DIR - news) as flailing markets cut into the online trading business.

The firm said it would buy about 18.4 million shares, or 18 percent, of CSFBdirect's common stock for about $4 in cash.

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To: BWAC who wrote (395)3/26/2001 11:18:46 PM
From: Joan Winston
   of 406
Strange Valuation in ONLINE Brokerage. wrt to CSFBdirect
it sounds like CSFB is trying to place a price on the
NUMBER of accounts at around $880 each and saying this
is rich compared to other online brokers.

I truly hope they will take into consideration the
fact that the average account holder at CSFB has almost
3 times the assets as the other discount brokerages.

Also, it was the merger last year that stalled DLJDIRECT marketing and stifled account growth in the Fall 2000. The costly rebranding was only necessary because of the CSFB merger and it surely is responsible in part for the low stock price.

CSFBdirect application is now powering and receiving
revenue from many independent brokerages and these
revenues are growing at an excellent rate but are not
even being considered in their offering price.
This seems almost unjust that they can now just suck
these publicly traded stocks back in at a bargain basement
$4 by a vote of the CSFB board of directors but it looks
like they can because they own 85% of the stock.

I look forward to reading their filings with the SEC on
this one.

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