Will Create a Platform to Deliver Outsourcing and Correspondent Clearing
Services
NEW YORK and CHICAGO, Aug. 5 /PRNewswire/ -- The Bank of New York Company,
Inc. (NYSE: BK) and EVEREN Capital Corporation (NYSE: EVR) today announced a
definitive agreement pursuant to which The Bank of New York will acquire an 80
percent interest in EVEREN Capital's EVEREN Clearing Corp. subsidiary. The
transaction is expected to be completed in the fourth quarter of 1998, at
which time EVEREN Clearing Corp. will be merged into BNY Clearing Services, a
newly formed entity. Terms were not disclosed. The transaction is subject to
regulatory and other approvals.
EVEREN Capital will retain a 20 percent interest in BNY Clearing Services
which will seek to accelerate the expansion of EVEREN Clearing's correspondent
business. EVEREN Capital will realize a one-time net after-tax gain of
approximately $13 million.
As part of the transaction, EVEREN Securities, Inc. will execute an
outsourcing arrangement with BNY Clearing Services. EVEREN Securities, Inc.,
which currently clears on a fully disclosed basis through EVEREN Clearing,
will become a carrying broker-dealer. Pursuant to the agreement, EVEREN will
clear its trades on an omnibus basis through, and outsource its clearing,
execution and financing/cash management activities to, BNY Clearing Services.
EVEREN's clearing costs will approximate the historical cost of the
operations being outsourced. Accordingly, the transaction will have no
meaningful impact on EVEREN Capital's earnings from continuing operations.
Thomas A. Renyi, chairman and chief executive officer of The Bank of New
York said, "EVEREN Clearing Corp. provides an excellent platform for the
Bank's entry into the correspondent clearing business. We look forward to
adding new service capabilities for our existing broker-dealer clients,
including outsourcing solutions to support middle and back office operations."
According to EVEREN Capital Corporation Chairman and Chief Executive
Officer James R. Boris, "There is no better organization with which to expand
a correspondent clearing business today than The Bank of New York. It has
built a reputation as one of the best securities processing firms in the
industry. This joint venture is another example of the creative approaches
EVEREN takes that allow us to participate in high-margin businesses while at
the same time minimizing our future fixed expenses. It should also enable us
to focus our technology and other resources more effectively on our core
retail, capital markets and asset management businesses. We expect our
interest in the joint venture to create significant value as BNY Clearing
Services' correspondent clearing business grows in future years."
BNY Clearing Services will retain headquarters in Milwaukee. No
reductions in staff are planned. The president and chief operating officer of
EVEREN Clearing, C. Michael Viviano, will assume the title of president and
chief executive officer of BNY Clearing Services.
EVEREN Capital Corporation is the fifth largest publicly traded majority
employee-owned company in the U.S. and its wholly owned subsidiary, EVEREN
Securities, Inc., ranks among the 10 largest national full-service brokerage
firms. The company serves individual, corporate, municipal and institutional
clients through an integrated network of approximately 1,700 investment
consultants in 170 offices by combining the capital markets resources of a
large national organization with the personalized service and dedication of a
smaller firm.
Currently, EVEREN holds approximately $60 billion of client assets in more
than 600,000 active client accounts. EVEREN Securities and EVEREN Clearing
are members of the Securities Investor Protection Corporation, the New York
Stock Exchange and other principal exchanges. For more information, visit the
company's web site at http://www.everensec.com.
The Bank of New York was founded in 1784 by Alexander Hamilton and is the
nation's oldest bank operating under its original name. It is the principal
subsidiary of The Bank of New York Company, Inc. (NYSE: BK). With $63 billion
in total assets as of June 30, 1998, the Company provides a complete range of
banking and other financial services to corporations and individuals worldwide
through its six basic businesses: Securities Servicing and Cash Processing;
Corporate Banking; Asset Based Lending; Trust, Investment Management and
Private Banking; Retail Banking; and Financial Market Services. Additional
information on the Company is available at http://www.bankofny.com.
Except for historical information, statements included in this release may
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements involve a number
of risks, uncertainties and other factors that could cause actual results to
differ materially, as discussed in the companies' filings with the Securities
and Exchange Commission.
SOURCE EVEREN Capital Corporation
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Related links:
http://www.everensec.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 121760
CONTACT:
Media Relations, Elizabeth Cassanos,
312-574-5273, or Wilson Medina, 312-574-5152, or Investor
Relations, Caron L. Schreiber, 312-574-5724, all of EVEREN
Capital Corporation; or Media Relations, Paul J. Leyden,
212-495-1041, or Investor Relations, Nicholas Silitch,
212-495-1721, both of The Bank of New York
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