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MELLON COMPLETES ACQUISITION OF THE BOSTON COMPANY; ANNOUNCES MANAGEMENT AND ORGANIZATION FOR ITS TRUST AND INVESTMENT BUSINESS

 PITTSBURGH, May 21 /PRNewswire/ -- Mellon Bank Corporation (NYSE: MEL) today announced that it has acquired The Boston Company, a trust and money management subsidiary of Shearson Lehman Brothers, for $1.453 billion.
 The acquisition, announced in September 1992, combines two leading providers of trust and investment services, increasing Mellon's trust assets under administration to approximately $700 billion, including approximately $150 billion under management. With completion of the transaction, Mellon now enjoys at least a top-five position in each of the major trust and investment businesses:
 -- Institutional trust, including Master Trust and Custody, with
 $440 billion in assets under administration;
 -- Mutual fund services, with approximately $105 billion in assets
 under administration;
 -- Institutional asset management, with approximately $120 billion
 in assets under management;
 -- And private banking, with approximately $35 billion in assets
 under management and administration.
 "This acquisition positions Mellon for long-term leadership in businesses with excellent growth prospects," said Frank V. Cahouet, chairman and chief executive officer of Mellon Bank Corporation. "We are delighted to be joining with a partner whose strengths, culture and commitment to clients matches our own. Moreover, we believe that, with this acquisition, Mellon has created a profile that is unique among major banks and positions us exceptionally well for the future. Our investors, clients, associates and the Boston community all stand to benefit from this historic transaction."
 Cahouet noted that the combined assets under administration have increased by approximately $30 billion since the September 1992 announcement of the transaction. "Clients have responded enthusiastically to this merger," he said, "and we are confident that, together, Mellon and The Boston Company will serve them even better than either organization could separately."
 Mellon's trust and investment business -- combining its trust and investment department and The Boston Company -- will be headed by W. Keith Smith. In addition to his duties as a Mellon vice chairman, Smith, as announced previously, has been named chairman and chief executive officer of The Boston Company.
 "Although the merger of our companies has become final only today, our work of the past several months ensures that we will hit the ground running," Smith said, noting that more than 60 joint teams from Mellon and The Boston Company have conducted in-depth merger planning over that period of time. "Our clients will benefit from the merging of the skills, knowledge, products and reinvestment capacity of two outstanding providers of trust and investment services."
 Smith said that a major element in the merger planning process was defining the management and organizational structure for the new enterprise. He announced the following appointments:
 Lawrence S. Kash has been named president and a director of The Boston Company and Boston Safe Deposit and Trust Company. Kash, a Mellon executive vice president who most recently headed Mellon's private banking activities, will be responsible for managing investment products, including advisory and administrative services for mutual funds. Peter Gallary, executive vice president and head of the investor services group at The Boston Company, will continue in that capacity and as president of The Boston Company Advisors, Inc., reporting to Kash.
 Christopher M. "Kip" Condron retains his position as president of Boston Safe Deposit and Trust Company. In addition, Condron assumes management responsibility for the combined private banking business of Mellon and The Boston Company, including related mortgage loan origination. He has been named a director of The Boston Company and Boston Safe Deposit and Trust Company.
 Robert M. Boyles, executive vice president and head of Mellon's trust and investment department, assumes management responsibility for the global asset management and institutional trust businesses.
 Desmond J. Heathwood, executive vice president of The Boston Company and chairman of The Boston Company Institutional Investors, Inc.; and Philip R. Roberts, chief investment officer of Mellon's trust and investment department, will continue in their current roles, reporting to Boyles. In addition to his present responsibilities, Roberts will direct the securities lending activities of the combined organization, and will oversee the activities of Franklin Portfolio Associates and Mellon Capital Management, investment management subsidiaries of Mellon Bank.
 Also reporting to Boyles are Daniel M. Kilcullen, executive vice president at The Boston Company, who will manage master trust and global custody, with principal responsibility for defined benefit plan administration and operations; and Darryl J. Fluhme, executive vice president at Mellon, with principal responsibility for defined contribution plans and other industry segments.
 "This highly talented and deep team of business managers capitalizes on the expertise and experience resident in both The Boston Company and Mellon, and provides exceptional leadership for our combined organization," Smith said.
 William J. Nutt, president of The Boston Company since 1989, will not join the combined organization.
 "As the integration process unfolded, Bill did not see a role for himself that fit his career objectives," Smith said. "We regret his departure, and owe him a debt of gratitude for his leadership of The Boston Company and his outstanding work throughout the integration planning process."
 Smith added that George W. Carmany III, chief administrative officer of The Boston Company, will be rejoining the American Express Company, where he worked for 15 years before joining The Boston Company in 1990. "We thank George for his many contributions in strengthening The Boston Company over the past three years, and wish him all the best in his new endeavors at American Express," Smith said.
 Mellon indicated that, as functions of the two companies are combined, up to 200 positions will be eliminated this year. Mellon further indicated that any future job eliminations could be substantially mitigated by expected business growth -- as well as attrition -- and, therefore, did not project a range of such eliminations.
 Mellon further indicated that The Boston Company and Mellon names will continue in use.
 In addition to increasing Mellon Bank Corporation's assets under administration to approximately $700 billion, acquisition of The Boston Company increases Mellon's balance sheet assets to approximately $36 billion, ranking Mellon, on a pro forma basis based on March 31, 1993 data, as the nation's 21st largest bank holding company.
 With major locations in Pittsburgh and Boston, and 32 offices in 19 cities overall, Mellon Bank's trust and investment business, including The Boston Company, is a leading national provider of institutional trust, institutional asset management, private banking and mutual fund services.
 With assets of approximately $36 billion, Mellon Bank Corporation is a major superregional bank holding company. Through its subsidiaries, it provides wholesale, middle market and retail banking, as well as numerous service products including trust and investment, cash management, information services and mortgage banking.
 /delval/
 -0- 5/21/93
 /EDITORS: Biographies and photographs of executives named above are available upon request./
 /CONTACT: Thomas W. Butch of Mellon Bank, 412-234-6436; or F. Gregory Ahern of The Boston Company, 617-722-3550/
 (MEL)


CO: Mellon Bank Corporation; The Boston Company; Shearson Lehman
 Brothers ST: Pennsylvania, Massachusetts IN: FIN SU: TNM


CD -- PG013 -- 1317 05/21/93 16:32 EDT
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Publication:PR Newswire
Date:May 21, 1993
Words:1139
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