Mergers & Acquisitions

Wachovia Phasing Out A.G. Edwards Brand

May 26, 2008 - Wachovia Corp. plans to phase out the 121-year-old A.G. Edwards name, sacrificing a strong brand for a stronger one. 'At the end of the day, the deciding factor was the huge brand equity and awareness surrounding the name Wachovia,' said David Monday, executive director of marketing, innovation and growth at Wachovia Securities LLC. 'It's just a more well-known name.'

American Airlines' Beacon Funds Take Flight

April 21, 2008 - On the heels of its $328 million loss in the first quarter, down from a $81 million profit in the first quarter of 2008, American Airlines' parent company, AMR Corp., Fort Worth, Tex., announced on Wednesday it is unloading 90% of its American Beacon Advisors investment management unit for $480 million in cash. That 90% interest is being picked up by Lighthouse Holdings, an affiliate of two private equity firms: Pharos Capital Group of Dallas and TPG Capital of Forth Worth. The sale is expected to close this summer, pending the approval of American Beacon's shareholders and clients.

Week in Review

January 28, 2008 - Insured Bond Funds Quietly Outperform DALLAS-As the subprime mortgage crisis unfolded in the latter part of 2007 and took its toll on the municipal market- specifically the bond insurance industry-one sector of tax-exempt mutual funds was quietly outperforming all other categories.

Asset Managers Predict Trends for 2008: In Search For Alpha, Funds Will Look to Capture Retirement Plans

January 21, 2008 - By now, most asset management executives have seen the predictions that large-cap growth will be the way to go in 2008. But digging deeper than mere asset class predictions, MME spoke with two industry leaders to tease out nuances of what fund managers can expect this year. Peter Delano, co-author of the Tower Group's '2008 Top 10 Business Drivers, Strategic Responses, and IT Initiatives in Investment Management,' said one new challenge for the fund management industry will be dealing with the effects of the subprime debacle and the resulting credit crunch.

New ETFs May Harbor Surprise Capital Gains

January 21, 2008 - The rapid growth in the exchange-traded fund arena is increasing the complexity of capital gains taxes, writes the Wall Street Journal. Last year, 18% of the ETFs tracked by Morningstar Inc. passed along capital gains to investors, or 95 ETFs in total. In 2006, that number was 6% and in 2005 it was 3%.

BISYS Sale Includes $36M Prenup'

May 13, 2007 - Details of the sale of BISYS Group of Roseland, N.J., to bank holding company Citigroup of New York for a total of $1.47 billion are intriguing. For one, Robert Casale, BISYS chairman and interim chief executive officer and president, was quick to note that the firm's investment bankers fielded 26 initial offers of interest from parties 'split evenly between potential strategic and financial buyers.' The firm's management made nine presentations to potential acquirers and received four letters of intent between February and April. Early in April, it entered into an exclusive negotiation with Citigroup.

Citigroup to Acquire BISYS for $1.45 Billion

May 6, 2007 - Citigroup announced last Wednesday that it will acquire BISYS Group for $1.45 billion in cash and divest its retirement and insurance services units to J.C. Flowers, a private equity firm, for $650 million. Citigroup will keep BISYS' fund and alternative investment units so that it can expand its services to hedge funds, mutual funds and private equity firms. The sale confirms recent reports that BISYS, which had been on the block for nine months, would be sold in pieces.

BISYS Sale Could Be Nearing Hedge Fund Manager Vies for Board Seat

April 8, 2007 - Amid speculation that a sale of all or parts of financial servicing company BISYS Group of Roseland, N.J., are in the works, one hedge fund manager, Ahmet Okumus, president of Okumus Capital of New York, has been buying up shares of the firm and is looking for a seat on the company's board. On March 23, Okumus-who owns 12.7 million BISYS shares representing 10.4% of the outstanding shares valued at $148 million-sent a letter to the board suggesting that he join them to 'provide practical insight and guidance in considering the company's strategic alternatives.'

Gaming Fund Gambles on New Advisor

March 25, 2007 - As it approaches its first birthday, the Gaming and Casino Fund, now managed by Ahrens Advisors of Dallas, is ready to welcome a brand new parent. This week, Ladenburg Thalmann Asset Management, a division of Ladenburg Thalmann of New York, the sixth-oldest firm on the New York Stock Exchange, will officially adopt the fund and become the investment advisor of the small, sector fund with assets hovering at $3 million. The multi-cap fund narrowly invests in casinos, gaming manufacturers, lottery firms and electronic/video gaming companies.