Local Digest

Carlyle Group buys stake in Bermuda bank; Nabi shareholders approve Glaxo deal

Wednesday, March 3, 2010

INVESTING

Carlyle buys stake in Bermuda bank

The Carlyle Group is part of an investment group that has purchased a $550 million stake in Bermuda-based Bank of N.T. Butterfield & Son, the private equity firm announced Tuesday.

District-based Carlyle and Canadian Imperial Bank of Commerce each purchased approximately $150 million of common and convertible shares in Butterfield. Other investors include the Wellcome Trust, the Bermuda Government Pension Funds, investor Julian Robertson and Goshen Investments.

The investments are part of a comprehensive plan to increase capital and remove risk from Butterfield's balance sheet. The bank also announced the retirement of Alan Thompson as chief executive and named Chief Financial Officer Bradford Kopp as his replacement.

"This capital gives Butterfield the flexibility under a new chief executive officer to restore the confidence and discipline that have been the hallmarks of this storied institution since its founding in 1858," said Olivier Sarkozy, head of Carlyle's financial services team. "We look forward to a long and productive relationship."

-- Thomas Heath

PHARMACEUTICAL

Nabi shareholders approve Glaxo deal

Rockville-based Nabi Biopharmaceuticals said shareholders approved its option and license agreement for the smoking-vaccine candidate NicVax with GlaxoSmithKline, a deal that could be worth up to $500 million..

Nabi's NicVax is intended to train the immune system to make antibodies that will attach themselves to nicotine. The firm will get $40 million upfront and complete testing of NicVax. GlaxoSmithKline, based in London, will start developing a second-generation version of the vaccine.

Nabi could receive milestone payments for successful testing, regulatory approval and sales targets, as well as royalties of more than 10 percent on sales. The companies said those payments could reach more than $500 million.


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