If Nuveen accepts the all-cash bid, its shareholders will receive $65 a share, a 20% premium to the stock’s $51.56 closing price on Tuesday.
Although the board of directors has approved the offer and said it would recommend that shareholders approve of it, Nuveen said it would accept other bids, however, through July 19.
“We are pleased with this transaction, which reflects an important step in our firm’s development and a compelling value for our stockholders,” said Timothy R. Schwertfeger, Nuveen’s chairman. “This transaction will provide Nuveen the opportunity to accelerate our development of new investment capabilities, products and distribution channels and help us attract and retain top industry talent.” Specifically, Schwertfeger said, the deal will allow Nuveen to boost its institutional and high-net-worth business, mutual funds and structured products.
In addition, Nuveen announced that its current president, John P. Amboian, would become chief executive officer, while Schwertfeger will rescind that title but remain chairman.
