T. Rowe Price Forms Holding Company
July 17, 2000
T. Rowe Price Associates of Baltimore, Md., later this year, will begin operating under a new holding company, T. Rowe Price Group, said Steven Norwitz, a spokesperson for the company. T. Rowe Price Associates will be one of several subsidiaries operating under the new company.
The move will provide financial flexibility, he said. The change will also make it easier for the firm to acquire other firms and raise capital, Norwitz said.
T. Rowe Price is interested in acquiring any firm that would strengthen and broaden the firm's product line, but it does not currently have specific candidates in mind, Norwitz said.
"It's not like we feel we have any holes to fill," he said. "We are very well-rounded in our fund lineup."
The company announced the reorganization June 30 after shareholders approved the formation of a holding company. The move requires shareholders to exchange each of their existing shares for one share in the new holding company.