Bzw Asia Sells Assets To Csfb, Trims Hk Staff

BZW Asia, a unit of Britains Barclays Plc, said on Monday it would shed 75 staff in Hong Kong after signing a deal to sell parts of its Asian business to Credit Suisse First Boston.

BZW Asias chairman Roger Davis said more layoffs were expected across Asia following Mondays deal to sell off parts of its Asian investment banking and equity businesses to Credit Suisse First Boston (CSFB) for an undisclosed amount.

The businesses sold had net assets of 14 million ($22.6 million) at November 30, 1997.

Lay-offs have started in Hong Kong, approximately 75 from the equity business, Davis told Reuters.

 

Across the region a number of people are looking at the other (BZW Asia) businesses. It is too early to say, how many more (lay-offs) there may or may not be, but I suspect there will be some more, he told Reuters.

CSFB, which announced in November its purchase of BZWs European equity and investment banking businesses, said the deal was an important step in its Asian expansion plans.

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, it said.

But the staff cuts were another blow to Asias troubled banking industry following news of retrenchments at other firms over 1997 and early this year in the wake of the regions economic crisis.

Peregrine Investments Holdings Ltd, another Hong Kong-based firm, filed for liquidation on Monday, delivering more grim news to its staff after letting 275 people go in November as a result of regional financial turmoil.

In December, Hong Kong-based Indosuez W.I. Carr Securities said it would trim 72 staff in Asia to maintain profitability in anticipation of a bleak 1998.

Under the deal, CSFB will buy BZW Asias investment banking, equity capital markets and equity personnel in Hong Kong, and BZWs 70 per cent interest in an equity joint venture in Singapore.

The sale to Credit Suisse First Boston included BZWs equity business in Taiwan, its stock exchange seats in Singapore, Hong Kong and Shanghai, and additional personnel in India, Malaysia and Indonesia.

BZW Asia employed about 500 people in Hong Kong. Davis said some of BZW Asias staff would be transferring to CSFB.

We are currently examining the options for the remainder, he said, adding that it was too early to say what would happen to the rest of BZW Asias businesses.

It is too early to say in detail. A number of other people are looking at parts of those businesses and we are looking at which parts of the businesses can be absorbed by Barclays Capital, said Davis.

Barclays Capital is involved in foreign exchange, money markets, project finance, structured finance and derivatives businesses.

BZW Asias parent, Barclays, has been looking to sell its equity-related businesses. We have got some of that remaining. We are now examining various options for those pieces of businesses, said Davis.