Friday, 19 December 2014
Last updated 10 hours ago
Dec 4 2006 | 10:48am ET
The Bank of New York will pay $16.5 billion to acquire Pittsburgh’s Mellon Financial Corp., creating the largest securities servicing firm and corporate trustee in the world, both firms said today.
The deal—BoNY’s second this year, following its April agreement to swap its consumer banking business for JPMorgan Chase’s corporate trust business—creates a giant which will compete for hedge funds’ securities lending, servicing and trusteeship business. The new firm, which will be based in New York, has been dubbed Bank of New York Mellon Corp., and boasts some $16.6 trillion in assets under custody, $8 trillion in assets under trusteeship and $1.1 trillion across its various asset management branches, including hedge funds and the Dreyfus mutual funds.
BoNY Chairman and CEO Thomas Renyi will head the new firm as executive chairman for 18 months following the close, and will be succeeded by Mellon Chairman and CEO Robert Kelly, who will serve as CEO of BoNY-Mellon under Renyi. BoNY President Gerald Hassell will be president of the combined entity.
The merger comes eight years after—and $6.5 billion under—BoNY’s rejected 1998 bid for Mellon. The transaction, which has been approved by both boards, is expected to close in the third quarter of next year.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.