London-based fund manager Amvescap announced Monday that it will
purchase PowerShares Capital Management, a leading U.S. provider of
exchange traded funds (ETFs). It plans to buy the business, which
manages about $3.5 billion in assets, for an initial payment of $60
million plus up to an additional $170 million in cash based on
management fee performance and other contingent payments.
Amvescap anticipates either a neutral or slightly positive impact on 2006
earnings. The transaction remains subject to shareholder and regulatory