Alliance Capital Management L.P. Announces Unitholder Approval of Reorganization Plan.NEW YORK--(BUSINESS WIRE)--September 22, 1999-- Alliance Capital Management L.P. (NYSE NYSE See: New York Stock Exchange : AC) ("Alliance") announced the approval of the proposed reorganization by the holders of 68% of all outstanding public Units not affiliated with Alliance or Equitable Life Equitable Life may refer to:
Chairman Dave Williams commented, "We're gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. by the positive response of our Unitholders to the reorganization proposal. We are expeditiously ex·pe·di·tious adj. Acting or done with speed and efficiency. See Synonyms at fast1. ex moving forward to complete this approved plan, which we expect will occur in the fourth quarter of 1999." As previously announced, the reorganization of Alliance's business will give investors in Alliance the choice between 1) continuing to hold liquid Units of Alliance listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. that are subject to a 3.5% federal tax on Alliance's gross business income or 2) exchanging their current units on a one-for-one basis for a highly illiquid Illiquid An asset or security that cannot be converted into cash very quickly (or near prevailing market prices). Notes: A house is a good example of an illiquid asset. See also: Cash, Liquidity Illiquid In the context of finance. interest in a new private limited partnership that is not subject to that tax. In connection with the reorganization, Alliance will offer all holders of Alliance Units the opportunity to exchange their Units in Alliance for limited partnership interests or Units in the new partnership on a one-for-one basis. The exchange offer will take place pursuant to an exchange offer prospectus that Alliance anticipates mailing by the end of next week. Unitholders are NOT required to exchange their current publicly traded units for private limited partnership units. Alliance expects to transfer its business to a newly formed private limited partnership which will conduct Alliance's business without change in management or employee responsibilities. Alliance's principal asset will be its interest in the new partnership, and it will function solely as a holding company through which public Unitholders will continue to own an indirect interest in Alliance's business. Alliance will change its name to "Alliance Capital Management Holding L.P.", and the new partnership will assume the name "Alliance Capital Management L.P." About Alliance Capital Management L.P. Alliance Capital is the nation's largest publicly traded asset manager, as measured by assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. , with more than $321 billion in client assets under management at June 30, 1999. Alliance manages retirement assets for many of the largest public and private employee benefit plans (including 29 of the nation's Fortune 100 companies), for public employee retirement funds in 32 out of the 50 states, and for foundations, endowments, banks, and insurance companies worldwide. Alliance is one of America's largest mutual fund sponsors, with a diverse family of fund portfolios and approximately 4.5 million shareholder accounts. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion