Old Mutual To Buy United Asset Management

June 19, 2000

South Africa’s largest life insurance and pension fund manager, Old Mutual Plc, which despite the name is a stock company, as it demutualized last year, has agreed to purchase U.S. fund manager United Asset Management for an overall price of $2.3 billion.

Old Mutual will pay $25 per share, approximately $1.46 billion, and will assume $769 million in debt. The tender offer for the shares is scheduled to commence within 30 days.

Old Mutual, whose shares trade on the London Stock Exchange, has been expanding outside of South Africa since its demutualization. This move is its first major acquisition in the U.S., and will triple the amount of assets under management to approximately $275 billion.

Mike Levett, Chairman and CEO of Old Mutual stated, ” We believe this transaction has considerable benefits for both Old Mutual and the United Asset Management group of firms, their clients and professional staff. We expect there to be significant opportunities for cross selling and distribution of investment products into Old Mutual’s client base.”

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