AllianceBernstein To Acquire W.P. Stewart - Quick Facts

(RTTNews) - AllianceBernstein L.P. (AB) and W.P. Stewart & Co., Ltd. (WPSL.PK) announced a definitive agreement whereby AllianceBernstein will acquire W.P. Stewart, an equity investment manager. Upon completion of the acquisition, W.P. Stewart's investment services will be added to AllianceBernstein's equity offering.

The two firms noted that W.P. Stewart's team of seasoned investment managers will remain in place and continue to manage their investment services as they do today. At the same time, they will gain access to AllianceBernstein's broad global reach and research team, and benefit from extensive access to corporate management.

To help ensure a smooth transition, founding partner William P. Stewart will stay on through the earlier of the end of this year or the close of the transaction, at which point he will retire from the firm, AllianceBernstein stated.

At the closing of the transaction, AllianceBernstein will pay W.P. Stewart shareholders $12 per share in cash and will issue to W.P. Stewart shareholders transferable contingent value rights entitling the holders to an additional cash payment of $4 per share if the assets under management in the acquired W.P. Stewart investment services reach $5 billion on or before the third anniversary of the closing.

W.P. Stewart currently has approximately 5 million shares outstanding. The closing is expected to occur in about four to six months.