Printer Friendly

TRANSFER OF EQUITABLE CAPITAL TO ALLIANCE CAPITAL COMPLETED

 NEW YORK, July 22 /PRNewswire/ -- The Equitable Companies Incorporated (NYSE: EQ) and Alliance Capital Management L.P. (NYSE: AC) today announced the completion of the transfer of Equitable Capital Management Corporation's business to Alliance Capital. As a result of the transaction, Alliance becomes one of the largest asset management organizations in the U.S., with assets under management exceeding $100 billion.
 The business of Equitable Capital has been transferred to Alliance Capital in exchange for 11.9 million newly issued Units in Alliance Capital. These Units have a value of approximately $261.8 million, based on the closing price of $22 per Unit on July 21, 1993. In addition, up to a maximum of $25 million Units may be issued to Equitable over a period of five years to reflect receipt of certain contingent incentive fees by Alliance Capital and its subsidiaries. The Equitable has also completed the purchase of $50 million in newly issued Alliance Capital Units to provide for working capital and other needs of Alliance Capital.
 The transaction was approved by Alliance unitholders at a special meeting held today.
 Alliance Capital is now 63 percent owned by The Equitable, versus 55 percent prior to the transfer of business. The newly combined entity will operate under the name Alliance Capital Management L.P.
 The current market value of Equitable's Units in Alliance Capital Management L.P. following the transaction is approximately $998 million. The outstanding Alliance Capital Units owned by The Equitable after the transaction has a net book value of approximately $157 million, on a pro forma basis as of March 31, 1993.
 "This transaction demonstrates our ongoing commitment to unlock the 'hidden values' on Equitable's balance sheet," said Richard H. Jenrette, chairman and chief executive officer. "The combination of these two highly successful money managers also is expected to result in operating savings of $18 million annually and will provide a more focused marketing approach in selling mutual funds and other financial products by Equitable's agency force."
 Dave H. Williams, the chairman and chief executive officer of Alliance Capital, said that "the completion of the transaction is evidence of Alliance's commitment to growth. Our client base is expanded, our investment management capabilities broadened, and the result will be higher returns to Alliance Capital unitholders." He added that "based upon the performance of Alliance Capital during 1993 and current market values, we conservatively project that as a result of the transaction annual revenues will increase by approximately $100 million and annual earnings will increase by over $30 million. On a per Unit basis, including all of the newly issued Units, annual net income and annual distributions should rise about $0.20 per Unit. This step-up in per Unit earnings and distributions should begin during the current quarter."
 The Equitable Companies Incorporated is one of the world's premier investment managers with $157 billion in assets under management as of March 31, 1993, through products distributed by its primary businesses: The Equitable Life Assurance Society of the U.S.; Alliance Capital Management L.P.; Donaldson, Lufkin & Jenrette Inc.; and Equitable Real Estate Investment Management Inc. The Equitable and AXA, its largest shareholder and global partner, are among the world's leading providers of insurance and asset management products.
 Alliance Capital is a diversified global investment adviser, and is one of the leading managers in the U.S. of tax-exempt and public retirement funds. It is also a major manager of individual assets through a broad line of mutual funds and cash management products.
 -0- 7/22/93
 /CONTACT: Nancy Amiel, 212-554-4293 or (investors) Greg Wilcox, 212-554-2595, both of Equitable; or Linda Finnerty of Alliance Capital, 212-969-1316/
 (EQ AC)


CO: The Equitable Companies Incorporated; Alliance Capital Management ST: New York IN: FIN SU:

WB -- NY082 -- 4693 07/22/93 15:28 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 22, 1993
Words:631
Previous Article:LA QUINTA INNS, INC. ANNOUNCES SECOND QUARTER RESULTS
Next Article:NORTH CAROLINA EASTERN MUNI PWR AGENCY $540 MIL REVS 'A' BY FITCH -- FITCH FINANCIAL WIRE --
Topics:


Related Articles
ALLIANCE CAPITAL MANAGEMENT L.P. COMPLETES PRIVATE PLACEMENT
ALLIANCE CAPITAL MANAGEMENT REPORTS DISTRIBUTION TO UNITHOLDERS AND SECOND QUARTER RESULTS
ALLIANCE CAPITAL MANAGEMENT L.P. REPORTS DISTRIBUTION TO UNITHOLDERS AND THIRD QUARTER RESULTS
THE EQUITABLE, ALLIANCE CAPITAL AND EQUITABLE CAPITAL ANNOUNCE AGREEMENT IN PRINCIPLE ON TWO INVESTMENT UNITS
ALLIANCE CAPITAL AND EQUITABLE CAPITAL SIGN DEFINITIVE AGREEMENT
THE EQUITABLE'S PROFITS UP SHARPLY IN FIRST QUARTER
EQUITABLE BOARD DECLARES REGULAR QUARTERLY DIVIDENDS FOR NEXT TWO QUARTERS
THE EQUITABLE REPORTS 44% NET INCOME GAIN FOR SECOND QUARTER; ASSETS UNDER MANAGEMENT RISE $19 BILLION OVER 1993 PERIOD
EQUITABLE COMPLETES SERIES OF EXCHANGE TRANSACTIONS
Fitch Assigns Alliance Capital 'F-1/A+' Ratings - Fitch Financial Wire -

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters