AXA Subsidiaries To Buy Institutional Fund Manager

June 22, 2000

AXA Financial, Inc. (AXF) and Alliance Capital Management L.P. (AC), both U.S. based subsidiaries of France’s AXA Group, have entered into an agreement to acquire substantially all of the assets and liabilities of Sanford C. Bernstein, Inc., the largest value-oriented manager of institutional assets in the industry.

The transaction, which values Bernstein at $3.5 billion, will combine it with AC to form an asset management company with approximately $475 billion in assets under management (AUM) and annual revenues of about $3.2 billion.

AXF, an U.S. company, which is 60 percent owned by AXA Group, and coordinates its majority shareholdings in Equitable Life, AC and investment bankers Donaldson, Lufkin & Jenrette, will own approximately 53 percent.

The combined firm, which will have about 4,000 employees, will manage investment assets for approximately 2,600 institutional and 15,000 private client accounts, as well as $189 billion in mutual fund assets and 5.8 million mutual fund shareholder accounts worldwide.

Coming soon after Germany’s Allianz acquired California based PIMCO, the acquisition marks another step in the globalization of the financial services industry. When combined with AXA Group’s other holdings, it will have more than $900 billion in assets under management.

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