THE BANK OF NEW YORK ACQUIRES BOND ADMINISTRATION GROUP FROM BARNETT BANKS, INC.
NEW YORK, Dec. 6 /PRNewswire/ -- The Bank of New York announced today that it has entered into an agreement to purchase a major part of the corporate trust business of Barnett Banks Trust Company, N.A., a wholly owned subsidiary of Barnett Banks, Inc. (NYSE: BBI), based in Jacksonville, Fla. Terms were not disclosed. The corporate trust group at Barnett Banks, Inc. serves as trustee, transfer agent, paying agent and/or escrow agent on debt issued by clients such as school districts, hospitals, municipalities or corporations. The acquisition, which is expected to be completed the first quarter of 1994, will increase The Bank of New York's current book of corporate trust business to over 16,000 issues representing over $250 billion in outstanding debt. The Bank of New York is among the top five providers of corporate trust services. Under the terms of the agreement, The Bank of New York's affiliate in Florida, The Bank of New York Trust Company of Florida, N.A., which is headquartered in Miami, intends to establish a branch in Jacksonville to service portions of the Florida-based business. "This acquisition strengthens our position in corporate trust and complements our strategic objective of growing our Securities Processing business through the development of new business as well as synergistic acquisitions," said Thomas A. Renyi, Vice Chairman of The Bank of New York. "The Bank of New York has been involved in operating Barnett Banks' bond processing operations since 1991 and is therefore well equipped to provide continuity of service," said Joseph M. Velli, Executive Vice President. "Barnett's strategic plan calls for the company to focus on businesses with strong profit margins and promising growth potential," said Barnett Trust Company Chief Executive Officer Michael C. Baker. "While we have been able to compete successfully in the bond administration market, it's clear that specialized, larger-scale providers such as The Bank of New York are best positioned to compete in this area going forward." The Bank of New York was founded in 1784 by Alexander Hamilton and is the nation's oldest bank operating under its original name. It is the principal subsidiary of The Bank of New York Company, Inc. (NYSE: BK), which is the sixteenth-largest bank holding company in the United States, with total assets of $46 billion as of Sept. 30, 1993. The Company provides a complete range of banking and other financial services to corporations and individuals worldwide through its five basic businesses: Corporate Banking, Retail Banking, Securities and Other Processing, Trust and Investment Management, and Financial Market Services. -0- 12/6/93 /CONTACT: Michael M. Pascale, VP, 212-495-1041, or Rhonda Barnat, AVP, 212-495-1725, both of Bank of New York/ (BK BBI)
CO: Bank of New York; Barnett Banks Trust Company, N.A. ST: New York, Florida IN: FIN SU: TNM
MP -- NY089 -- 0870 12/06/93 14:34 EST
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|Date:||Dec 6, 1993|
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