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CALIFORNIA | FINANCIAL SERVICES | THE STATE

Montgomery to Sell Unit to Commerzbank

March 26, 1997|(Bloomberg News)

Montgomery Securities Inc. said it agreed to sell its money-management subsidiary to Commerzbank, Germany's third-largest bank, for an estimated $250 million. About half the assets of Montgomery Asset Management, or $4 billion, are spread among 19 mutual funds. San Francisco-based Montgomery Securities said it will use the proceeds from the sale to fund future growth in its investment banking and brokerage businesses. Investment bankers have speculated for months that Commerzbank was seeking to acquire another U.S. money-management firm to go along with Boston-based Martingale Asset Management. The transaction between Commerzbank and Montgomery needs approval from the Federal Reserve Board. It is expected to close by July 31, the companies said.

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