Manny Hanny Buys Bank of America Stock Transfer Business
SAN FRANCISCO (AP) _ Bank of America agreed to sell its stock transfer business to Manufacturers Hanover Trust’s California-based unit for an undisclosed price, both banks said Thursday.
About 120 BankAmerica employees would be affected by the transaction, but it was unknown how many would be hired by Manufacturers Hanover or would lose their jobs, Bank of America spokesman Jack Houseman said.
The deal is pending regulatory approval.
D’Arcy LeClair, managing director for Manufacturers Hanover’s corporate and institutional trust business, said the acquisition will increase its leading role in the business. LeClair predicted his bank will make additional acquisitions in the future, though he said none are planned.
Stock transfer services provide certificate issuance and registration, dividend payments and record keeping services for shareholders at publicly traded companies. Bank of America was among the top 10 providers of stock transfer services, with more than 350 accounts and 750,000 shareholders.
Richard V. Fulp, executive vice president and head of BankAmerica’s trust and financial services division, said the bank decided to withdraw from the stock transfer business because ″there is excess capacity in the industry.″
Fulp said it believes there’s a lack of new customer volume to justify long-term investment.
Bank of America said it is refocusing its trust and corporate management business. The bank’s other related business in its corporate agency division - corporate trust, reorganization, escrow and private mutal funds - will not be affected, the bank said.
″We think that our resources and energy could be applied more appropriately in other areas of corporate agency,″ said Fulp.
Manufacturers Hanover Vice Chairman Edward D. Miller said the deal ″will help us take advantage of economies of scale to increase the profits of this business.″