Mergers Security Market Intermediaries - Major Companies

Following are some of the major mergers and acquisitions of some of the major brokerage firms. Also inclusive are important alliances as well as interesting connections to different industries, also included are CEOs of these corporations.



DEAN WITTER

1929- Merges with Duisenburg, Wichman & Co.
1939- Acquires Bissinger & Co.
1940- Acquires W.M. Cavalier & Co.
1941- Acquires Lieb, Keyston & Co.
1953- Buys Harris, Hall & Co.
1957- Acquires Central Republic Co.
1959- Acquires Laurence M. Marks & Co.
1970- Merges with J. Barth & Co.
1973- Merges with Laird, Bissell & Meeds.
1977- Acquires InterCapital from S&P 500, (mutual fund offering).
1978- Merges with Reynolds & Co. in New York, largest merger to date in the securities industry.
1981- Joins the Sears/Roebuck Coalition.


MORGAN STANELY

1971- establishes a Merger and Acquisition Division, (mainly overseeing deals rather than engaging in any).
1995- Acquires Miller Anderson & Sherrerd.
1996- Buys Van Kampen American Capital, (a mutual fund company).


MORGAN STANLEY and DEAN WITTER

1997- Morgan Stanley Group and Dean Witter/Discover & Co. merge. Becomes one of the largest multinational corporations geared to financial services.
1999- Morgan Stanley Dean Witter & Co. acquires AB Asesores, the largest Spanish financial institution. Forms an Alliance with National Bank of Kuwait. Colin Powell and Morgan Stanley announce first-ever brokerage firm dedicated to America’s Promise, (investing for American government).
2000- Morgan Stanley Dean Witter & Co. acquires Ansett Worldwide Aviation Services, (makes Morgan Stanley one of the largest owners of aircraft worldwide).


-Morgan Stanley Dean Witter & Co. appears as #11 on the Forbes 500 list, 2001

http://www.forbes.com/

-Info from http://www.morganstanley.com/

-Philip Purcell, CEO of MSDW is #11 on Forbes Top CEO’s list, 2001.



MERRILL LYNCH (ML)

1940- ML merges with E.A. Pierce & Cassatt, (brokerage firm + investment bank).
1941- ML merges with Fenner & Beane.
1964- ML buys C.J. Devine, (starts to deal government insurance securities).
1978- ML acquires White and Weld Co, (an international investment firm and helps expand ML overseas).
1995- ML acquires Smith New Court and becomes the largest equity organization in the world.
1996- ML acquires Hotchkis and Wiley.
1997- ML acquires McIntosh Securities Limited a major Australian brokerage firm.
1997- Total assets in private accounts top $1 trillion.
1999- ML partnership with Multex.com to develop e-trading.
2000- ML partnership with English HSBC is made, (launches global e-trading). ML and Bloomberg information group announce partnership. Comes together with Goldman Sachs, Morgan Stanley Dean Witter to launch new electronic market with the support of the major investment firms.


-Merrill Lynch appears as #23 on the Forbes 500 list, 2001 http://www.forbes.com/

-Info concerning ML see the homepage @ http://www.ml.com/

-David Komansky, CEO of ML-HSBC is #35 on Forbes Top CEO’s, 2001.





CHARLES SCHWAB (CS)

Schwab, a relatively new company (1970), hasn’t had any significant mergers to date.
1980-1983- BankAmerica Corp. buys Schwab.
1987- Charles Schwab (person) buys it back from BankAmerica Corp. and takes it public.
2001- Establishes an alliance with TD Waterhouse to acquire Aitken Campbell, (a Scottish marketing firm).
Schwab has resolved to be “different” from its competitors, Morgan Stanley, Merrill Lynch, et al. They want to be a more personal brokerage firm, encouraging personal advisors and resisting the merger movement in the financial industry.


-Info from http://www.businessweek.com/1998/21/b3579181.htm concerning business ideals and resisting mergers, for more info on Schwab visit this site.

-For info on Charles Schwab visit http://www.aboutschwab.com/ and http://www.forbes.com/ (concerning company information).

-Charles Schwab, CEO of CS, appears #47 on Forbes Top CEO’s list, 2001.





SALOMON SMITH BARNEY

Charles Barney and Edward Smith combine their firms in the 1800s.
1987- First major deal in company history, Primerica Corp. buys Smith Barney and Harris Upham & Co. Inc.
1993 July- Smith Barney operations combined with Shearson Lehman Brothers within the Primerica Corp.
1993 December- Smith Barney becomes subsidiary of Traveler’s Group after Primerica’s acquisition of the Traveler’s Corp.
1997- Smith Barney Holdings Inc. combined with Salomon Inc. and becomes known as Salomon Smith Barney Holdings Inc.
1998- Citicorp and Traveler’s Croup merge to create Citigroup, this is one of the largest if not the largest merger within the financial industry. This merger includes Citibank, Salomon Smith Barney, Traveler’s Insurance, Primerica Corp, and Commercial Credit (CitiFinancial).


-For info on Citigroup and its subsidiaries see http://www.citigroup.com/

-For Salomon Smith Barney company information see their homepage http://www.salomonsmithbarney.com/ or http://www.forbes.com/

-Sanford Weill, CEO of Citigroup, appears #1 on Forbes Top CEO’s list, 2001.





GOLDMAN SACHS GROUP (GS)

1998- GS acquires Spear, Leeds & Kellogg.
1999- Goldman Sachs acquires Hull Group, (an electric market-maker).
2001- Goldman Sachs buys Benjamin Jacobson & Sons LLC.
Goldman Sachs is an investment company with a staunch commitment to advising Mergers & Acquisitions between companies. Throughout its history it has mainly advised M&A’s rather than participating in them.


-For information on Goldman Sachs Group and its subsidiaries see http://www.hoovers.com/co/capsule/6/0,2163,40176,00.html and http://www.gs.com/

-Henry Paulson Jr., CEO of Goldman Sachs Group, appears #70 on Forbes Top CEO’s, 2001.

-Goldman Sachs Group appears #24 on Forbes 500 List, 2001. http://www.forbes.com/


PAINE WEBBER (PW)

· 1942- Charles Jackson and Laurence Curtis & Co. merge with William Paine and Wallace Webber to form Paine Webber.

· 1972- PW acquires Abacus Fund Inc., (an investment company).

· 1977- PW acquires Mitchell Hutchins Inc.

· 1979- PW acquires Blyth, Eastman Dillon & Co., (a company that was founded by Dean Witter and Charles Blyth).

· 1995- PW acquires Kidder Peabody group from the General Electric Company.

· 2000- UBS AG, a Swiss bank, acquires Paine Webber to create UBS Paine Webber.



-For more information concerning UBS AG or Paine Webber visit http://painewebber.com/ or http://www.forbes.com/