CHARLOTTE, N.C., Sept. 30 /PRNewswire/ -- Bank of America Corporation today announced it has signed an agreement to sell the long-term asset management business of Columbia Management to Ameriprise Financial, Inc. for approximately $1 billion, subject to certain adjustments.
On June 30, 2009, the long-term asset management business had approximately $165 billion in equity and fixed-income assets under management. The total consideration to be paid to Bank of America is expected to be between $900 million and $1.2 billion based on net asset flows and investor consents in the period leading up to closing.
Bank of America continues to consider alternatives for the cash investments, or short-term asset management business, currently managed by Columbia.
"The acquisition of Merrill Lynch provided an opportunity to look at our entire portfolio of businesses with an eye toward strengthening our capital position while ensuring that we continue to offer the broadest possible solutions to our customers and clients as one of the world's leading financial services firms," said Joe Price, chief financial officer of Bank of America. "We're pleased to reach an agreement with Ameriprise that is consistent with that goal."
The transaction is expected to close in the spring of 2010, subject to regulatory approvals and customary closing conditions, including fund board, fund shareholder and other required client approvals.
Bank of America
Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 53 million consumer and small business relationships with more than 6,100 retail banking offices, nearly 18,500 ATMs and award-winning online banking with 29 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to more than 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients in more than 150 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.
Bank of America makes certain statements in this press release that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation reform Act of 1995. These statements are not historical facts, but instead represent Bank of America's current expectation regarding the consideration to be received from the sale of Columbia Management's long-term asset management business, the closing date of the transaction and other similar matters. These statements are not guarantees of future events and involve certain risks, uncertainties and assumptions that are difficult to predict and are often beyond Bank of America's control. Actual outcomes and events may differ materially from those expressed in, or implied by, any of these forward-looking statements.
You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risks, as well as those more fully discussed under Item 1A. "Risk Factors" of Bank of America's 2008 Annual Report on Form 10-K and in any of Bank of America's subsequent SEC filings: net asset flows and investor consents and regulatory and other approvals and other transaction closing conditions. Forward-looking statements speak only as of the date they are made, and Bank of America undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.
Columbia Management Group, LLC (Columbia Management) is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. Columbia Funds are distributed by Columbia Management Distributors, Inc., member FINRA and SIPC. Columbia Management Distributors, Inc. is part of Columbia Management and an affiliate of Bank of America Corporation.
Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus which contains this and other important information about the fund, contact your Columbia Management representative or financial advisor or go to www.columbiamanagement.com.
SOURCE Bank of America