Philadelphia-based retail business is focus
COLUMBUS, Ohio, Nov. 1 /PRNewswire/ -- Nationwide Financial Services,
Inc. (NYSE: NFS) and Nationwide Mutual Insurance Company have begun
preliminary discussions regarding a possible transaction relating to
Nationwide Mutual's asset management business, principally the retail
mutual fund activities located in Philadelphia.
The development follows announcements by both companies earlier this
year regarding the asset management business. During 2006, Nationwide
Mutual Insurance Company and its subsidiary, Nationwide Corporation
(collectively, Nationwide Mutual), undertook a strategic review of
Nationwide Mutual's money management and investment business. In
conjunction with that review, Nationwide Mutual completed the sale of the
U.K.-based arm of that business in September and is now considering a sale
of the mutual fund business operated by its subsidiary, Gartmore Global
Investments, Inc.
Similarly, Nationwide Financial, a subsidiary of Nationwide Mutual,
previously announced that it has been evaluating strategic options to
develop a mutual fund platform to leverage Nationwide Financial's core
investment and distribution capabilities.
The assets under management for the mutual fund activities under
discussion are approximately $25 billion, of which approximately $13
billion is sub-advised by third parties. The boards of directors of each
company have formed special committees of independent board members to
review and evaluate a possible transaction. Separately, Nationwide Mutual
is reviewing its strategic options for the remaining institutional-oriented
asset management businesses, which are not located in Philadelphia.
To assist in their respective review, analysis and negotiation of a
transaction, each special committee has retained legal and financial
advisors. The Nationwide Financial special committee has retained Credit
Suisse as its financial advisor and Sidley Austin LLP as its legal advisor
and the Nationwide Mutual special committee has retained Goldman Sachs &
Co. as its financial advisor and Sullivan & Cromwell LLP as its legal
advisor.
Discussions between Nationwide Financial and Nationwide Mutual are
preliminary in nature, and no agreement with respect to any material terms
or conditions of any transaction has been reached. Furthermore, there is no
assurance that any agreement between Nationwide Financial and Nationwide
Mutual will be reached. Each special committee continues to review and
evaluate this and other possible transactions consistent with the strategic
views of Nationwide Financial or Nationwide Mutual, as applicable.
Neither Nationwide Financial nor Nationwide Mutual intends to make
further public announcements about discussions regarding the potential
transaction until either a definitive agreement is reached or discussions
are terminated.
About Nationwide Mutual
Nationwide Mutual, based in Columbus, Ohio, is one of the largest
diversified insurance and financial services organizations in the world,
with more than $158 billion in assets. Nationwide ranks #98 on the Fortune
100 list. The company provides a full range of insurance and financial
services, including auto, motorcycles, boats, homeowners, life, commercial
insurance, administrative services, annuities, mortgages, mutual funds,
pensions and long-term savings plans. The Nationwide companies include the
country's seventh-largest property/casualty, the fourth-largest homeowners,
the sixth- largest auto insurance group and the country's largest farm
owners insurer. Nationwide Life Insurance Company, the major subsidiary of
Nationwide Financial, ranks 11th in assets according to A.M. Best. For more
information, visit http://www.nationwide.com.
About Nationwide Financial
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded
company based in Columbus, Ohio, provides a variety of financial services
that help consumers invest(1) and protect their long-term assets, and
offers retirement plans and services through both public- and
private-sector employers.
Nationwide, Nationwide Financial and the Nationwide Framemark are
federally registered service marks of Nationwide Mutual Insurance Company.
On Your Side is a service mark of Nationwide Mutual Insurance Company.
(1) Nationwide Investment Services Corporation, member NASD. In MI
only: Nationwide Investment Svcs. Corporation.
Contacts:
Eric Hardgrove (614)677-8516
hardgre@nationwide.com
Jeff Botti (614)249-6339
bottij@nationwide.com
SOURCE Nationwide Financial Services, Inc.
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Related links:
http://www.nationwidefinancial.com
http://www.nationwide.com
http://www.prnewswire.com/comp/607050.html/
CONTACT:
Eric Hardgrove, +1-614-677-8516, or
hardgre@nationwide.com, or Jeff Botti, +1-614-249-6339, or
bottij@nationwide.com, both of Nationwide Financial Services,
Inc.
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