UniCredito Italiano Group Announces Acquisition of the Pioneer Group, Inc. for $1.2 Billion: Deal Enables Strategic Expansion for UniCredito Italiano Group into U.S. Market.
BOSTON--(BUSINESS WIRE)--May 15, 2000
The Pioneer Group, Inc. (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : PIOG) and UniCredito Italiano Group (CRDI CRDI Centre de Recherches pour le Développement International (International Development Research Centre - Canada)
CRDi Common Rail Direct Injection Engine .MI), Italy's second largest banking group, today announced a definitive agreement under which UniCredito Italiano Group ("UniCredito") will purchase all of the outstanding shares of The Pioneer Group, Inc. ("Pioneer") for $43.50 per share in cash.
In the transaction, UniCredito Italiano Group will acquire all of Pioneer's global investment management businesses, including operations in the U.S., Germany, Ireland, Eastern Europe Eastern Europe
The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. and Asia. Prior to the close of its transaction with UniCredito, Pioneer will distribute to its shareholders 100% of the company's ownership interest in its remaining assets, including its Russian financial services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page. operation, its natural resource businesses, and its interests in venture capital and real estate.
The transaction has an equity market value of approximately $1.2 billion based upon the fully diluted Pioneer common shares and options currently outstanding. Upon completion of the transaction, Pioneer and EuroPlus Research and Management ("EuroPlus"), UniCredito's existing asset management division, with operations in Dublin and Milan, will combine to form a powerful global investment company with 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. of over $100 billion.
The newly created Pioneer Global Asset Management, incorporated in Italy, will serve as the holding company for all global investment management businesses and will conduct its business worldwide under the Pioneer name.
Mr. John F. Cogan, Jr., President and Chief Executive Officer of The Pioneer Group, Inc. said, "We are very pleased to be joining an organization with the reputation and breadth of UniCredito. UniCredito's EuroPlus division has approximately $80 billion of assets under management. This transaction provides Pioneer shareholders with a premium on their investment and positions the combined company to play a leadership role in asset management throughout Europe and within the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ."
"UniCredito and Pioneer have complementary business platforms," Mr. Cogan continued. "We have similar investment philosophies, employing a bottom up, research-based approach to investment decisions. UniCredito has a strong distribution channel in Italy and offers fixed income as well as equity investment products. Pioneer has strong distribution channels in the U.S. and Germany with a seventy-two year history of equity investing. Both Pioneer and UniCredito clients will benefit from an expanded product line. Pioneer's employees can look forward to expanded career opportunities in a truly global investment management business. We eagerly anticipate working with UniCredito to capture the benefits of this combination for our customers and our employees."
Mr. Pietro Modiano, Head of Treasury, Investment Banking and Asset Management of UniCredito Italiano Group said, "The combination of Pioneer and EuroPlus will create one of the few asset management groups with strong bases in both the U.S. and Europe, and a presence in eight countries. We see significant opportunity to leverage Pioneer's and EuroPlus's product and distribution capabilities in Europe and the U.S. Pioneer will benefit from a strong commitment of UniCredito to realize fully what we perceive to be enormous potential of our combined asset management businesses both in the U.S. market and globally."
"We believe that, with the inclusion of Pioneer, we will continue the success that we have had in Europe with EuroPlus. At EuroPlus we have been able to capture the asset management opportunities of one of Europe's fastest growing markets while enjoying strong economic returns."
Mr. Pietro Modiano of UniCredito will be the Chairman of the newly created Pioneer Global Asset Management, based in Italy. Mr. John F. Cogan, Jr. will become Deputy Chairman of Pioneer Global Asset Management and will also be non-executive Chairman of Pioneer U.S., whose U.S. headquarters will remain in Boston. Mr. Fabio Innocenzi, currently Chief Executive Officer of EuroPlus, will become Chief Executive Officer of Pioneer Global Asset Management and Executive Vice Chairman of Pioneer U.S. Mr. David D. Tripple, currently President of Pioneer Investment Management, will become Chief Executive Officer of Pioneer U.S.
Timing and Approvals
Completion of the acquisition is subject to, among other things, approval by Pioneer's shareholders, Pioneer's mutual fund board of trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. and fund shareholders, and various regulatory agencies regulatory agency
Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. . The transaction is expected to close in the third quarter of 2000.
Distribution to Shareholders of Pioneer's Remaining Operations Immediately prior to the close of the transaction, Pioneer's other assets other assets
Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. - natural resources and other operations outside of the core investment management business - will be spun-off into a newly organized limited duration company to be named Harbor Global Company, Ltd. ("Harbor"). Pioneer shareholders will receive certificates of ownership in the new company. The new company will operate the businesses, with the purpose of ultimately liquidating the assets and distributing the proceeds within five years.
Mr. Stephen G. Kasnet, currently President of Pioneer Global Investments will become president of Harbor. The Board of Directors of Harbor will consist of three members of Pioneer's current board of directors, Mr. John D. Curtin Jr., Mr. W. Reid Sanders and Mr. John H. Valentine.
Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. & Co. and Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. Inc. acted as financial advisors, and Hale and Dorr LLP LLP - Lower Layer Protocol and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to Pioneer. Morgan Stanley To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Dean Witter Dean Witter may refer to:
UniCredito Italiano Group is one of Italy's largest banking groups, with significant presence in Eastern Europe. Based in Milan, UniCredito has over $150 billion in assets, over 3,500 branches, reported net earnings of $1.2 billion in 1999 and a return on equity of over 20%. UniCredito's asset management subsidiary, EuroPlus, is one of Europe's largest and fastest-growing asset managers, with 90 mutual funds and approximately $80 billion in assets under management. EuroPlus operates out of four locations, with Dublin being the primary base of research and investment management activities.
The Pioneer Group, Inc. is a global asset manager and currently manages $24 billion of assets on behalf of individual and institutional investors Institutional Investor
A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. . Based in Boston, Pioneer has financial services operations in the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. , Germany, India, Ireland, Poland and Russia. Its flagship fund, Pioneer Fund, was founded in 1928 and is the fourth oldest mutual fund in the United States.
This press release contains certain forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the safe-harbor provisions of the U.S. federal securities laws. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond the companies' abilities to control or estimate precisely, such as future market conditions, the behavior of other market participants The term market participant is used in United States constitutional law to describe a U.S. State which is acting as a producer or supplier of a marketable good or service. When a state is acting in such a role, it may permissibly discriminate against non-residents. and the actions of governmental regulators. Certain of these and other risk factors are detailed in Pioneer's SEC reports. The companies do not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release.