Business & Finance
Credit Suisse Group, Switzerland's second largest bank, agreed late last week to sell back its 19.9 percent stake in Warburg Pincus LLC to the New York investment firm for an undisclosed sum. The repurchase will take effect Jan. 1. The bank, based in Zurich, acquired the stake in 1999 but now wants to concentrate on products such as high-yield bonds and mortgage-backed securities, according to Bloomberg.com. Warburg Pincus, a leader in raising investment capital from financial institutions, is trying to overtake rival Blackstone Group LP and become the world's biggest buyout fund, Bloomberg.com says.
Magna International Inc., Canada's largest auto-parts supplier, said it has entered into a definitive plan to buy out other stockholders of Tesma International, a spinoff unit, for an estimated $650 million. Tesma, which is 44 percent stockholder-owned, makes engine, cooling, powertrain, and fuel components. Magna, the parent company, says that this consolidation should allow it to pursue new business more efficiently. Magna is based in Aurora, Ontario, north of Toronto.
In a sign of the times, retiring Bank of America chairman Chad Gifford will receive four tickets to 15 Boston Red Sox games each year for the rest of his life, according to details of his $16.4 million severance package filed with the Securities and Exchange Commission last week. Gifford will also have access to a company jet for up to 120 hours annually for five years. Gifford was chief executive of FleetBoston Financial Corp. when the bank was bought by Bank of America last April.