ARND WIEGMANN
A look at some must-read news on deals and deal makers around the world
Credit Suisse cuts more cash from bonuses
Bonus season is going to get a lot less fun if Credit Suisse has anything to do with it.
Cash bonuses are about to get smaller for those in the banking industry as pressure from regulators and politicians grows, with Credit Suisse now introducing much higher deferral levels for its employees.
Credit Suisse is tightening the rules for bonuses paid to employees, the firm said Monday, rolling out a new compensation set-up. The upshot is more workers will have their pay deferred and more of their pay will be deferred. The Swiss firm said in a release that "notable features of the 2010 compensation structure include a lower threshold for compulsory participation in the bank's deferred variable compensation programs and higher rates of deferral."
Bonuses over 50,000 swiss francs (about $51,500 in Canadian dollars) will now be subject to deferral, down from 125,000 francs previously. The deferral rates have been cranked up to a range of 35 per cent to 70 per cent. There won't be any escaping it in any Credit Suisse offices, as the pay change is global, the firm said.
Here's a link to the full release.
HudBay to buy Norsemont
After HudBay Minerals Inc. failed in its bid to buy Lundin Mining in 2009, there was talk that HudBay was damaged goods and could end up a takeover target itself. But with new management in place, HudBay is going on the offensive. The company is bidding $520-million for all of Norsemont Mining to add a big deposit in Peru.
Xstrata Plc close to winning $8-billion coal bid
Xstrata Plc is back on the takeover trail, reportedly leading an auction to buy Colombia's second-largest coal producer.
Merger Monday returns
It's the first real Monday in 2011 (last week being a quasi-holiday) and it seems that for this year, Merger Monday is back. In addition to the HudBay acquisition, there are two huge global deals hitting the tape. Duke Energy is bidding $13.7-billion for Progress Energy to create the biggest U.S. utility.
Also, DuPont Co. agreed to buy Dansico for $5.8-billion, picking up a big maker of enzymes that are used in foods.
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