T. ROWE PRICE AND USF&G CORPORATION ANNOUNCE PLANS FOR T. ROWE PRICE TO ACQUIRE SIX MUTUAL FUNDS
T. ROWE PRICE AND USF&G CORPORATION ANNOUNCE PLANS FOR T. ROWE PRICE TO ACQUIRE SIX MUTUAL FUNDS BALTIMORE April 16 /PRNewswire/ -- T. Rowe Price Associates, Inc. ("T. Rowe Price") (NASDAQ: TROW) and USF&G Corporation ("USF&G") (NYSE: FG) announced today that they have signed a letter of intent relating to a transaction under which six mutual funds managed and distributed by USF&G subsidiaries would become part of the T. Rowe Price family of funds. Under the proposed plan, T. Rowe Price would succeed USF&G Review Management Corp. (an indirect wholly-owned subsidiary of USF&G Corporation) as investment manager of the Axe-Houghton Growth Fund, Axe- Houghton Fund B, Axe-Houghton Income Fund, Over-The-Counter Securities Fund, European Emerging Companies Fund and USF&G Cash Reserve Fund. The funds have combined assets of approximately $630 million and 50,000 shareholder accounts. Terms of the transaction, which is expected to close in the third quarter, are subject to the execution of a definitive agreement and to receipt of various corporate and regulatory approvals, including approval by the funds' boards of directors and shareholders. The financial terms of the transaction were not disclosed. George J. Collins, president of T. Rowe Price, said the firm "looks forward to welcoming these shareholders to the T. Rowe Price family of funds."
Collins said, "the proposed transaction calls for assets of the six USF&G funds to be combined with T. Rowe Price funds having comparable investment objectives and programs."
"The USF&G funds are a good fit with our funds," he said. "Shareholders will be able to purchase shares without paying any sales charges of 12b-1 fees and will gain access to a wide range of services and investment opportunities offered by T. Rowe Price." Norman P. Blake, Jr., chairman, president, and chief executive officer of USF&G Corporation, said, "T. Rowe Price is an outstanding company with a great reputation in the mutual fund business." He further noted: "This is another important step in USF&G's restructuring efforts to focus on our core insurance operations." T. Rowe Price serves as investment adviser to the T. Rowe Price family of no-load mutual funds and to institutional and individual clients. The firm managed $36 billion in assets as of March 31, 1992. USF&G Corporation, with assets of $14.5 billion, is composed of property/casualty and life insurance subsidiaries. Its primary subsidiary is United States Fidelity and Guaranty Company, one of the nation's largest property/casualty insurers. -0- 4/16/92 /CONTACT: Steven Norwitz of T. Rowe Price Associates, 410-547-2124, or Kerrie Burch-Deluca of USF&G Corporation, 410-547-3573/ (TROW FG) CO: T. Rowe Price Associates, Inc.; USF&G Corporation ST: Maryland IN: FIN SU: TNM
TQ -- NY103 -- 9500 04/16/92 16:40 EDT
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|Date:||Apr 16, 1992|
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