An SI Board Since May 1999 |
Posts |
SubjectMarks |
Bans |
Symbol |
406 |
10 |
0
|
DIR |
|
DLJ Files to Sell 15 Mln DLJ Direct Shares at $13 to $15 Each (Courtesy:Bloomberg)
Washington, May 6 (Bloomberg) -- Donaldson Lufkin & Jenrette Inc. will seek to sell 15 million shares that track performance of its online brokerage business, DLJ Direct, for $13 to $15 apiece.
DLJ would keep 85 million shares after the offering, giving investors a 15 percent stake in the New York-based online brokerage. If shares sell for $14 each, at the middle of the estimated range, DLJ would raise about $193.5 million after expenses from the sale. At that price, with 100 million shares outstanding, the brokerage unit would have an implied value of about $1.4 billion.
DLJ aims to raise money for DLJ Direct while investors are enthusiastic buyers of shares of online brokers. The tracking shares will reflect the performance of DLJ Direct separately from its parent. They carry no voting rights or claims on corporate assets.
DLJ first filed to sell the tracking shares in March. In an amended filing with the U.S. Securities and Exchange Commission today, the company disclosed the number of shares it plans to sell and the price it hopes to get for them.
DLJ Direct will get the proceeds from the sale of 10 million shares, and will use the money to repay a note issued to an affiliate before the offering, and to support its $65 million advertising budget for 1999, among other general corporate purposes. Parent DLJ will receive proceeds from the sale of the remaining 5 million shares, the filing said.
An underwriting group led by DLJ and DLJ Direct will market shares to the public. DLJ has applied to trade on the New York Stock Exchange under the symbol ''DIR.'' -- Siobhan Hughes
|
|