Philadelphia Stock Exchange (PHLX) announced on 17 August that Citigroup, Credit Suisse First Boston (CSFB), Morgan Stanley and UBS have each acquired equity stakes in the exchange, a move that is expected to be a major boost for the loss-making venture.
PHLX said Morgan Stanley will invest $7.5m for 10% of the total PHLX shares outstanding and also received a warrant to increase its stake to 19.9%. Citigroup, CSFB and UBS, meanwhile, will each invest $3.75m for 5% each of the total PHLX shares outstanding. Those firms will also receive a warrant for a nominal consideration to increase each stake up to 9.9% if certain criteria are met.
The four firms join Citadel and Merrill Lynch, which each took 10% equity stakes that could rise to 19.9% in June (see FO...