Fidelity Sells Bonds for First Time
June 21, 1999
FMR Corp., the parent company of Fidelity Investments of Boston, plans to sell $750 million in corporate bonds, the company and independent credit rating agencies said last week. The funds will be used for general corporate purposes, said Thomas Eidson, a Fidelity spokesperson. Fidelity has no plans to use the proceeds to acquire another company or as the first step in going public, Eidson said. He declined to disclose details of Fidelity's plans, citing federal securities laws' limitations on public comment while the sale is pending. The sale marks the first time that Fidelity has issued corporate bonds.
In the offering documents for the sale, Fidelity said the U.S. Justice Department is inquiring into possible violations of the Foreign Corrupt Practices Act by a foreign company in which Fidelity, Fidelity International and a Fidelity partnership own a controlling interest. Eidson said the investigation is unrelated to Fidelity's mutual fund, retirement or brokerage businesses.