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Morgan eyes mutual funds
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June 30, 1997: 2:02 p.m. ET
Banking firm seeks to acquire large minority interest in American Century
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NEW YORK (CNNfn) - American Century Cos. confirmed Monday it is in talks with banking firm J.P. Morgan & Co. about selling a substantial minority interest in the mutual fund manager.
The deal is not assured, however. "There is no agreement to report at this point and no guarantee that one will be reached. Beyond this statement, we will not comment any further," said American Century Spokesman Gunnar Hughes.
J.P. Morgan also was tight-lipped about the deal, refusing to make any comment on the talks.
The value of the deal is unknown, but the Wall Street Journal Monday quoted sources as saying the discussions were about J.P. Morgan acquiring a 45 percent stake of American Century for about $900 million.
Morgan wanted to acquire all of American Century, according to the Journal, but the Stowers family, which controls American Century, wants to retain majority voting rights.
Privately held American Century is one of the leading mutual fund managers in the nation, with approximately $58 billion under management in 70 funds with about 2.5 million investors.
If completed, the deal would expand J.P. Morgan's presence in mutual funds. Currently, only $29 billion of Morgan's $222 billion in assets are mutual fund assets.
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