News Releases
NEW YORK and TORONTO, November 16, 2009 – BMO Capital Markets, the investment and corporate banking arm of BMO Financial Group (NYSE, TSX: BMO), today announced a definitive agreement with Greenwich, Connecticut-based Paloma Securities, L.L.C. to hire its global securities lending team and acquire assets used in its securities lending business.
Paloma Securities conducts a leading securities lending business, enjoying deep, established relationships with lenders, custodians, inter-dealer participants and end borrowers worldwide. Paloma Securities has offices in Greenwich, New York, Seattle, London and Melbourne, Australia. Paloma Securities is a subsidiary of the Paloma Funds.
“Expanding our securities lending operation fits with our strategy of disciplined growth that focuses on our core clients,” said Tom Milroy, CEO, BMO Capital Markets. “The addition of this lending team from Paloma Securities complements our existing capability in North America and provides us with a platform to build on for future opportunities in the United States and internationally.”
S. Donald Sussman, founder of the Paloma Funds, said: “For nearly three decades Paloma has been an innovator in the asset management business. We were the first hedge fund to develop a securities lending capability. Over the past 15 years, Paloma Securities has grown to be a market leader with a global presence. We believe BMO Capital Markets, with its excellent platform and strong balance sheet, is well positioned to expand this valuable business.”
The transaction, which is subject to regulatory approval, is expected to close in mid-December. The terms of the deal are not being disclosed.
Caution Regarding Forward-Looking Statements
Certain statements in this press release are forward-looking statements under the United States Private Securities Litigation Reform Act of 1995 (and are made pursuant to the ‘safe harbor' provisions of such Act) and applicable Canadian securities legislation. These forward-looking statements include, but are not limited to, statements with respect to the expected closing of the proposed transaction involving Paloma Securities, L.L.C., plans for the business and the financial impact of the transaction and are typically identified by words such as “believe”, “expect”, “anticipate”, “intend”, “estimate”, “plan”, “will”, “should”, “may”, “could” and other similar expressions.
By their nature, forward-looking statements require us to make various assumptions and are subject to inherent risks and uncertainties. We caution readers of this press release not to place undue reliance on our forward-looking statements as the assumptions underlying such statements may not turn out to be correct and a number of factors could cause actual future results, conditions, actions or events to differ materially from the expectations, estimates or intentions expressed in the forward-looking statements. Such factors include, but are not limited to: the possibility that the proposed transaction does not close when expected or at all because required regulatory or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all; that the terms of the proposed transaction may need to be modified to satisfy such approvals or conditions; that the anticipated benefits from the proposed transaction are not realized in the time frame anticipated or at all as a result of the loss of key customers, changes in general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which the business operates; judicial or regulatory proceedings; our ability to complete and integrate the proposed transaction; and other factors discussed on pages 30 and 31 of Bank of Montreal's 2008 Annual Report.
Bank of Montreal does not undertake to update any forward-looking statement, whether written or oral, that may be made, from time to time, by the organization or on its behalf, except as required by law.
About BMO Capital Markets
BMO Capital Markets is a leading full-service North American financial services provider, with over 2,200 employees operating in 14 North American offices and 27 worldwide, offering corporate, institutional and government clients access to a complete range of investment and corporate banking products and services. BMO Capital Markets is a member of BMO Financial Group (NYSE, TSX: BMO), one of the largest diversified financial services providers in North America with US$385 billion total assets and 37,000 employees as at July 31, 2009.
About Paloma Partners
Paloma Partners invests over $1.7bn in a unique multi-strategy investment approach and are considered one of the pioneers and leaders of the hedge fund industry. Paloma Partners has a twenty-seven-year track record and is among the longest-running funds in the industry. Paloma was advised in this transaction by Blackstone Advisory Partners L.P.
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