UPDATE 2-Greenhill to buy Caliburn for $91 mln in stock

Tue Mar 16, 2010 5:48pm EDT

* Greenhill to take 100 pct stake for 1.1 million shares

* Six Caliburn managing directors to join Greenhill

(Adds details)

March 16 (Reuters) - Boutique investment bank Greenhill & Co Inc (GHL.N) said it will buy Australia-based financial advisory firm Caliburn Partnership Pty Ltd for $91 million in stock.

Greenhill will issue Caliburn 1,099,875 shares plus a new convertible preferred stock that pays no dividend and will convert into additional shares of Greenhill common stock in three and five years if certain revenue levels are achieved.

"Caliburn significantly expands our capabilities in energy, mining, financial services, consumer and many other important sectors," said Scott Bok, co-chief executive of Greenhill.

All six managing directors and total staff of 40 of Caliburn will join Greenhill upon closing of the deal, the company said in a statement.

The deal is expected to close in early April.

Following completion of the transaction, Caliburn will operate in Australia/New Zealand under the name Greenhill Caliburn.

Greenhill, founded in 1996 by former Smith Barney chief executive Robert Greenhill, is positioning itself to take advantage of opportunities to advise corporations trying to navigate their way through the financial crisis.

Greenhill shares closed at $82.42 on the New York Stock Exchange on Tuesday. (Reporting by Sweta Singh in Bangalore; Editing by Jarshad Kakkrakandy)

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