Bank Of New York To Buy Mellon Financial
A bit more on this M&A Monday--we mentioned LSI Logic buying Agere Systems. Now it's the Bank of New York announcing its intentions to buy Mellon Financial for $16.5 billion dollars in stock. The new company will have $1.1 trillion dollars in assets under management – making it one of the top 10 asset managers in the world. It also will be the number one asset-servicing firm in the world. The newly combined outfit will operate under the name Bank of New York Mellon.
Robert B. Kelly – CEO of Mellon – will be CEO of the new firm. The CEO of Bank of New York – Tom A. Renyi – will be chairman. Of a total of 18 board seats – 10 will go to Bank of New York – eight to Mellon.
Bank of New York was up about $3 in pre-market trading since its Friday closing price of $35.48. Mellon Financial climbed $2 exactly – up to $42.05 – about a half hour before the U.S. markets open.