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SCMP Reporter

About 500 BZW Asia staff faced an uncertain future last night, after Credit Suisse First Botson (CSFB) confirmed that its buyout of parts of the BZW Asia group covered only 200 of the firm's 700 staff.

  BZW Asia chairman and chief executive Roger Davis yesterday said 75 Hong Kong-based jobs had been axed.

 'It's been the best deal we could get in these circumstances,' he said.

 The status of the rest of the posts was unclear.

 CSFB is to buy BZW's investment banking, equity capital markets and equity personnel in Hong Kong, its 70 per cent interest in an equity joint venture in Singapore, and equity operations in Taiwan from Britain's Barclays Bank.

 It will acquire BZW stock exchange seats in Singapore, Shanghai and Hong Kong.

 No figure for the deal was released.

 The sale does not include BZW's Australian operations, which ABN-Amro is believed to have bid for separately.

 Stephen Stonefield, CSFB Asia-Pacific chairman, said: 'CSFB has been actively expanding in Asia since 1996, and this acquisition complements our growth plans in the region.

  'We had a very successful year in Asia in 1997. With the additional strengths and networks acquired through BZW, we expect 1998 to be another fruitful year for CSFB.'  For Barclays, Britain's third-largest bank, the sale marks a sad end to its 11-year struggle to create a global securities business. Group deputy chairman Sir Peter Middleton is expected to resign after his division has been fully disbanded.

 CSFB, which is owned by the Credit Suisse Group in Zurich, acquired BZW's European equity and investment banking business last November for GBP100 million (about HK$1.25 billion).

 The net assets of the businesses being sold were valued at GBP14 million as of November 30, 1997.

 Mr Stonefield said: 'The acquisition increases our market share in Asia, while at the same time allowing CSFB to offer local execution capability in Singapore, Taipei and Shanghai.'  The deal means CSFB will now have seats on virtually all the region's main stock exchanges, including Hong Kong, Tokyo, Osaka, Bombay, Seoul, Taipei, Shanghai and Singapore.

 As for Bangkok, one of the most notable missing links, CSFB has made a bid of 6.24 billion baht (about HK$895 million) for Finance One, the largest of Thailand's 58 suspended finance companies.

 Following the BZW sale, which is subject to regulatory consent, Barclays' main presence in the region will be through Barclays Capital, Barclays Private Banking and its asset management business, Barclays Global Investors.

 Of these, Barclays Capital would be the largest.



BZW Asia staff face axe in Credit Suisse buyout