MBIA Inc. Completes Merger of Its Investment Business With 1838 Investment Advisors.
ARMONK, N.Y.--(BUSINESS WIRE)--July 31, 1998--MBIA Inc. (NYSE NYSE
See: New York Stock Exchange : MBI) announced today that it has completed the merger of its investment business with 1838 Investment Advisors.
Located in Radnor, Pa., 1838 is a full-service asset management firm with a strong institutional focus. The company manages over $6 billion in equity, fixed-income and balanced portfolios for a client base comprised of high-net-worth individuals, municipalities, endowments, foundations and corporate employee-benefits plans. 1838 acts as investment advisor to 1838 Investment Advisors Funds and 1838 Bond Debenture Trading Fund.
1838 will be part of a newly formed holding company, MBIA MBIA Montana Building Industry Association
MBIA Municipal Bond Insurance Association
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MBIA Municipal Bond Investors Assurance
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MBIA Maryland Business Incubation Association Asset Management Corporation, which consolidates MBIA's investment management operations. W. Thacher Brown, chairman, president and chief executive officer of 1838, was named president of MBIA Asset Management, which has over $21 billion of 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. .
The transaction is structured as a tax-free exchange and accounted for as a "pooling of interests Pooling of Interests
An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together.
The opposite of pooling of interests is the purchase acquisition method. ." MBIA expects the acquisition to be non-dilutive to 1998 earnings per share, excluding merger-related costs, and accretive thereafter.
Gary C. Dunton, president, MBIA Investment Management and Financial Services Division, said, "By merging 1838's strong equity management capabilities with MBIA's fixed-income capabilities, we are significantly enhancing our ability to serve the investment needs of our clients. The new holding company will enable MBIA to take advantage of synergistic marketing opportunities that exist among our investment management businesses."
MBIA Asset Management comprises MBIA's investment management products and services: pooled local government cash management (CLASS); guaranteed investments for bond proceeds; fixed-income and equity management and customized investment advisory services.
The new president of MBIA Asset Management, Mr. Brown has been president, chief executive officer and chairman of the board of 1838 Investment Advisors since 1988. He also serves as director of the 1838 Bond-Debenture Trading Fund, and Airgas Inc., both of which are 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. , as well as The Harleysville Mutual Insurance Company and the 1838 Investment Advisors International and Small Cap Funds. Before joining 1838, Mr. Brown was with Drexel Burnham Lambert Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was driven into bankruptcy in the 1980s by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. Investment Advisors and the capital management department of Smith Barney. He is a graduate of Princeton University and the Wharton School of Finance & Commerce at the University of Pennsylvania (body, education) University of Pennsylvania - The home of ENIAC and Machiavelli.
Address: Philadelphia, PA, USA. .
MBIA Inc., through its subsidiaries, is the world's preeminent financial guarantor and a leading provider of specialized financial services. MBIA provides innovative and cost-effective products and services that meet the credit enhancement, financial and investment needs of its public and private clients, domestically and internationally. MBIA Insurance Corporation has a claims-paying rating of Triple-A from Moody's Investors Service Moody's Investors Service
A leading global credit rating, research and risk analysis firm.
Moody's Investors Service
A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , Standard & Poor's Ratings Services and Fitch IBCA IBCA International Braille Chess Association
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IBCA Department of Interior Board of Contract Appeals . Please visit MBIA's web site at http://www.mbia.com.
CONTACT: Michael Ballinger