Credit Suisse First Boston Closes Competitive Gap with $12-Billion Purchase of DLJ

Wall Street is buzzing this morning with news that Credit Suisse First Boston is laying down $11.5 billion to purchase Donaldson, Lufkin & Jenrette. According to reports, a marriage of the two would deliver to DLJ a previously elusive global reach while closing the competitive gap between CSFB and major rivals Morgan Stanley Dean Witter and Goldman Sachs.

The buy, which breaks down to $90 per share, would flip DLJ from AXA SA of Paris, which holds roughly 70%, and do so at roughly three times the book value. The inflated price is being attributed to the interest in DLJ expressed by various competitors, such as Lehman Brothers.

GlobeSt.com is currently fleshing out how precisely the buy would affect the commercial real estate investment market and the global strategies of CSFB over the coming months. Also under investigation is the impact that Wall Street mergers will have on the industry. More to follow.