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May 03, 2000
First Union Acquires Forum Capital Markets
Company adds convertible bond business
CHARLOTTE-First Union Corporation today announced a definitive agreement to purchase Forum Capital Markets LLC, a convertible securities boutique, based in Old Greenwich, Connecticut. Forum, which was founded in 1993, currently services the largest institutional convertible securities investors in the United States.
"Forum brings us a significant presence into the convertible securities business, a key product for our clients. This acquisition taps synergies with our strong fixed-income and equity underwriting businesses," said Steve Cummings, First Union Securities' Co-Head of Capital Markets. "At First Union Securities, we are committed to bringing growing companies ideas and the capital to execute them."
Hal Purkey, Forum Capital Markets president, will maintain responsibility for the firm's convertible bond business that will be a part of First Union Securities' equity derivatives department in the Fixed Income Division. The convertible department will continue to work from Forum's offices in Old Greenwich.
The acquisition is expected to close in the third quarter subject to regulatory approval and other conditions of closing. The terms of the transaction were not disclosed. Forum Capital Markets will operate under the name First Union Securities, Inc.
"The excellent team at Forum Capital Markets adds immediate value for our clients," said Steve Kohlhagen, Managing Director of First Union's Fixed Income Division. "The convertible bond market is growing rapidly, and with the acquisition of Forum, we have a platform that will enable us to expand this business significantly. It's perfect timing. This convertible bond addition, which will report to Todd Steinberg, head of Equity Derivatives, comes right at the time we are seeing dramatic growth in our institutional equities and equity derivatives business."
"We were impressed with the leadership and the tremendous opportunities we saw at First Union Securities. Being part of First Union Securities, with its depth and breadth of products and services, will give us the resources we need to add even greater value to our clients," Purkey said. "We look forward to taking our business to the next level."
Forum Capital Markets was represented in this transaction by Putnam Lovell Inc.
First Union (NYSE:FTU), with $254 billion in assets and stockholders' equity of $17 billion at March 31, 2000, is a leading provider of financial services to 16 million retail and corporate customers throughout the East Coast and the nation. The company operates full-service banking offices in 12 East Coast states and Washington, D.C., full-service brokerage offices in 41 states, and international offices worldwide. Online banking products and services can be accessed through www.firstunion.com.
Important Notice: First Union Securities is the trade name under which First Union Corporation conducts its investment banking, merger and acquisition, asset management and mutual fund, brokerage and insurance businesses.
First Union Securities includes: (1) First Union Securities, Inc. ("FUSI"), a registered broker-dealer and member NYSE/NASD and SIPC providing investment banking, merger and acquisition advisory and brokerage services to corporations, individuals and other institutions throughout the United States; (2) First Union Brokerage Services, Inc. ("FUBS"), a separately registered broker-dealer and member NASD and SIPC providing primarily retail brokerage services; (3) First Clearing Corporation ("FCC"), a separately registered broker-dealer and member NYSE/NASD and SIPC, providing securities clearance and settlement services; (4) the Capital Markets and Capital Management Groups within First Union National Bank ("FUNB"), a national banking association, and its subsidiaries, providing asset management, lending, structured finance risk management, derivatives, and fiduciary services to institutions and individuals; (5) various subsidiaries within First Union Corporation providing investment advisory, administrative and other services to the Evergreen and Mentor families of mutual funds; and (6) various wholly-owned state insurance agencies.
Stocks, bonds, mutual funds or other securities offered or sold through First Union Corporation or any of its bank or non-bank subsidiaries are not deposits of any bank and are not insured, guaranteed or otherwise protected by the Federal Deposit Insurance Corporation or any other government agency; are not endorsed or guaranteed by First Union Corporation, FUNB or any bank; and involve investment risk, including possible loss of principal.
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