2ND UPDATE:Ameriprise CEO:Columbia Integration Likely By '11
30 Septiembre 2009 - 10:27AM
Noticias Dow Jones
The integration of Columbia Management into Ameriprise Financial
Inc. (AMP) will likely be completed by the end of 2011, Ameriprise
chief executive Jim Cracchiolo on a conference call Wednesday.
Bank of America Corp. (BAC) agreed to sell the stock and bond
mutual fund business of its Columbia Management unit to Ameriprise
for as much as $1.2 billion. The transaction is expected to close
in the spring.
Ameriprise also said that the acquisition of the Columbia
business would be paid "100% in cash at closing." It said the deal
was pre-funded through an equity offering in June, and no
additional financing would be necessary. There will be a one-time
non-recurring integration cost between $130-$160 million.
Even after the acquisition closes, Ameriprise will still have $1
billion in excess capital, said Cracchiolo. While the firm is
focused on integrating Columbia now, over time, Cracchiolo said the
firm will look at opportunities to redeploy capital.
Additionally, Cracchiolo said Ameriprise has a five-year
contract with Bank of America to distribute Columbia funds.
-By Jessica Papini, Dow Jones Newswires; 212-416-2172;
jessica.papini@dowjones.com