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


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