Printer Friendly

MBIA Inc. Announces Agreement to Merge Its Investment Business With 1838 Investment Advisors.

ARMONK, N.Y.--(BUSINESS WIRE)--June 22, 1998--MBIA Inc. (NYSE: MBI) announced today that it has agreed to merge its investment business with 1838 Investment Advisors, a full-service asset management firm with a strong institutional focus. Located in Radnor, Pa., 1838 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-benefit plans. 1838 acts as investment advisor to 1838 Investment Advisors Funds and 1838 Bond Debenture Trading Fund.

MBIA also announced the formation of a holding company, MBIA Asset Management Corporation, to consolidate these investment management operations. W. Thacher Brown, chairman, president and chief executive officer of 1838, will become president of MBIA Asset Management. At the close of the 1838 transaction, the holding company will have over $21 billion of assets under management.

The transaction will be structured asa tax-free exchange and accounted for as a "pooling of interests". The transaction, which is subject to regulatory approval and other customary conditions, is expected to close in the third quarter of 1998. MBIA expects the acquisition to be non-dilutive to 1998 earnings per share and accretive thereafter.

Gary C. Dunton, president, MBIA Investment Management and Financial Services Division, said, "This strategic transaction will significantly strengthen our investment management capabilities. By combining 1838's strong equity management with our fixed-income capabilities, we can provide clients with a full line of investment products and services to better serve their needs."

MBIA Asset Management will comprise 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.

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, Standard & Poor's Ratings Services and Fitch IBCA. Please visit MBIA's web site at

 CONTACT: Michael Ballinger (914) 765-3893

COPYRIGHT 1998 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1998, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Article Type:Article
Geographic Code:1USA
Date:Jun 22, 1998
Previous Article:David Vogler, Formerly of Disney Online, Returns to Nickelodeon Online as Vice President, Creative.
Next Article:IBM and Arkenstone Debut Software to Help People With Dyslexia Meet Reading Challenges.

Related Articles
MBIA Inc. Completes Merger of Its Investment Business With 1838 Investment Advisors.
MBIA Inc. Completes Merger of Its Investment Business With 1838 Investment Advisors.
1838 Bond-Debenture Trading Fund Announces the Approval of MBIA Capital Management Corp. as Investment Adviser.
1838 Bond-Debenture Trading Fund Declares Quarterly Dividend.
1838 Bond-Debenture Trading Fund Declares Quarterly Dividend.
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund Announces Trustee Appointment.
1838 Bond-Debenture Trading Fund Declares Quarterly Dividend.
1838 Bond-Debenture Trading Fund Shareholders Approve Proposals at Annual Meeting; Fund to Be Renamed Rivus Bond Fund.
Rivus Bond Fund (Formerly 1838 Bond-Debenture Trading Fund) Declares Quarterly Dividend.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters