ID :
21119
Thu, 09/25/2008 - 16:28
Auther :
Shortlink :
http://m.oananews.org//node/21119
The shortlink copeid
Nomura to set up $1 bn pool to retain Lehman staff
London, Sep 24 (PTI) Having acquired the Europe and
Middle East operations of Lehman Brothers Tuesday, the
Japanese brokerage firm Nomura has decided to create a bonus
pool of over one billion dollars to retain the employees of
the battered American investment banker.
"Nomura agreed to put up the cash in a bid to retain the
employees from equities and investment banking divisions of
Lehman in Europe and the Middle East. The bonus pool (about Rs
4,500 crore) will be shared between the employees over two
years," Financial Times reported today.
The Japanese financial services major has acquired parts
of the European and Middle Eastern operations of Lehman for
meagre two dollars.
According to the report quoting Nomura, the bank expected
to retain a "significant proportion" of the 2,500 employees,
although some would inevitably leave.
Quoting Sadeq Sayeed, Nomura's special adviser, the
newspaper said: "Slavery was abolished a long time ago. We
cannot control people in any other way apart from creating an
environment which is conducive for them."
The report published in the online edition of the
newspaper said that the news of Nomura's European deal comes
just one day after it paid 225 million dollars to clinch
Lehman's Asian-Pacific franchise by defeating other interested
parties including Barclays. The US bank has about 3,000 staff
in Asia, half of which are located in Tokyo, it added.
The Financial Times said the acquisition of Lehman's
European business would give Nomura the scale needed to
compete with its larger international rivals with the aim of
increasing its overseas revenues from 20 per cent to more than
30 percent by 2011.
About 50 percent of Lehman's 2007 revenue was generated
in Europe and Asia.
"This transaction will enable Nomura to punch its weight
in the international market," Sayeed was quoted as saying.
The deal does not include any of Lehman's trading assets
or trading liabilities or its European real-estate assets.
Further, the report noted that U.S. private equity
players --Bain Capital and Hellman & Friedman-- have teamed up
to bid for the rump of Lehman's investment management arm,
which includes the Neuberger Berman asset management business,
and its USD 35-billion private equity business.
Barclays last week agreed to acquire the private
investment management arm of the business, leaving assets
estimated to be less than Lehman's earlier five billion dollar
asking price.
"The asset management businesses are not part of the
bankruptcy but Lehman has put them up for sale and needs
buyers in the next few days or risks losing clients and valued
employees.
"Executives at the private equity arm are also
considering a management buy-out should its sale fall
through," the report added. PTI AKH
Middle East operations of Lehman Brothers Tuesday, the
Japanese brokerage firm Nomura has decided to create a bonus
pool of over one billion dollars to retain the employees of
the battered American investment banker.
"Nomura agreed to put up the cash in a bid to retain the
employees from equities and investment banking divisions of
Lehman in Europe and the Middle East. The bonus pool (about Rs
4,500 crore) will be shared between the employees over two
years," Financial Times reported today.
The Japanese financial services major has acquired parts
of the European and Middle Eastern operations of Lehman for
meagre two dollars.
According to the report quoting Nomura, the bank expected
to retain a "significant proportion" of the 2,500 employees,
although some would inevitably leave.
Quoting Sadeq Sayeed, Nomura's special adviser, the
newspaper said: "Slavery was abolished a long time ago. We
cannot control people in any other way apart from creating an
environment which is conducive for them."
The report published in the online edition of the
newspaper said that the news of Nomura's European deal comes
just one day after it paid 225 million dollars to clinch
Lehman's Asian-Pacific franchise by defeating other interested
parties including Barclays. The US bank has about 3,000 staff
in Asia, half of which are located in Tokyo, it added.
The Financial Times said the acquisition of Lehman's
European business would give Nomura the scale needed to
compete with its larger international rivals with the aim of
increasing its overseas revenues from 20 per cent to more than
30 percent by 2011.
About 50 percent of Lehman's 2007 revenue was generated
in Europe and Asia.
"This transaction will enable Nomura to punch its weight
in the international market," Sayeed was quoted as saying.
The deal does not include any of Lehman's trading assets
or trading liabilities or its European real-estate assets.
Further, the report noted that U.S. private equity
players --Bain Capital and Hellman & Friedman-- have teamed up
to bid for the rump of Lehman's investment management arm,
which includes the Neuberger Berman asset management business,
and its USD 35-billion private equity business.
Barclays last week agreed to acquire the private
investment management arm of the business, leaving assets
estimated to be less than Lehman's earlier five billion dollar
asking price.
"The asset management businesses are not part of the
bankruptcy but Lehman has put them up for sale and needs
buyers in the next few days or risks losing clients and valued
employees.
"Executives at the private equity arm are also
considering a management buy-out should its sale fall
through," the report added. PTI AKH
