Industry

Legg Mason of Baltimore announced last week that it will acquire Private Capital Management, a high-net-worth manager in Naples, Fla. in a cash and incentive deal that could reach $1.38 billion. This is Legg Mason's third acquisition of a wealth adviser within the past six months.

At 24, Carmen Caldwell has already invested some $700 in mutual funds. And unlike many investors her age, she took the initiative to set up the account herself.

State Street Corporation of Boston will acquire the portfolio accounting service business of DST System of Kansas City, Mo., the companies announced last week.

Bank of Montreal of Toronto, announced last week that it has acquired Guardian Group of Funds Ltd. from Guardian Capital Group Limited, also of Toronto. The deal is valued at U.S.$117 million in treasury shares, according to a Bank of Montreal spokesperson.

Liberty Financial Companies of Boston appears to be struggling to find a buyer for its asset management units and may have to drop its asking price in order to secure a buyer, according to industry analysts.

AMVESCAP of London announced last week that it will acquire Pell Rudman & Co. of Boston from Old Mutual PLC, also of London, in a multi-year purchase arrangement which includes a $172 million cash payment and potential asset retention payments of up to $28 million over the next two years.

Mellon Financial Corp. of Pittsburgh has announced that it will acquire Standish, Ayer & Wood, a predominantly fixed-income investment manager based in Boston in an all cash deal. Terms of the deal were not disclosed.

The merger announced earlier this month between First Union Corporation of Charlotte, N.C. and Wachovia Corporation of Winston-Salem, N.C. brings together two families of mutual funds that will have $96 billion in combined assets, according to the companies.

First Union Corporation of Charlotte, N.C. and Wachovia Corporation of Winston-Salem, N.C. announced last week that they have agreed to merge. The combined company, which will provide corporate banking, retail banking, asset and wealth management, capital markets and securities brokerage services and products, will have $222 billion in assets under management, including mutual fund assets of $96 billion, according to the companies. The combined company will be known as Wachovia Corporation. Its headquarters will be in Charlotte.

The proposed merger of American General of Houston and Prudential PLC of London may be in trouble. When initially announced on March 12, the stock swap was valued at $49.52 per American General share. That equates to $26.5 billion based on the 10-day trailing average closing price of Prudential stock as of March 9. On word of the proposed merger, however, the price of Prudential shares dropped dramatically. Since the announcement, there has been considerable speculation by analysts as to whether the deal will be completed.