Asset management firm Dreyfus will market $4.7 billion in Bear Stearns assets, the companies announced last Tuesday.
The agreement, reached after months of negotiation and due diligence, calls for the transfer of approximately $3 billion of money market assets and $1.7 billion of long-term assets to new or existing Dreyfus-managed funds.
Dreyfus, the mutual fund arm of Mellon Financial, will serve as manager and Dreyfus Service Corp. will serve as distributor of the new or existing Dreyfus-managed funds involved in this strategic arrangement. Bear Stearns will sub-advise certain equity assets of the former Bear Stearns funds. The deal is expected to close by the end of the second quarter of 2004, pending approval from Bear Stearns mutual fund shareholders and its board of directors.
Dreyfus will give Bear Stearns a much-needed facelift with respect to its sales force, which currently has just 500 employees, given its 50 years of experience and longstanding distribution relationships. Bear Stearns will serve as sub-advisor to the newly formed Dreyfus funds.
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