UPDATE 3-Bank of New York Mellon to buy Brazil's ARX Capital
(Adds analyst comments, byline, share closing)
By Dilipp S. Nag
BANGALORE Nov 13 (Reuters) - Bank of New York Mellon Corp (BK.N: Cotización), one of the world's biggest asset managers, said on Tuesday it agreed to acquire ARX Capital Management, a Rio de Janeiro-based asset management firm, to expand its operations in the Brazilian market.
Terms of the deal were not disclosed. But Bank of New York Mellon spokesman Jamie Brookes said in an e-mail that the transaction is payable in cash.
Sandler O'Neill + Partners analyst Mark Fitzgibbon said this is a tiny acquisition for Bank of New York Mellon. "It really should not impact the company's financial statements at all."
The deal, however, is consistent with the company's strategy of building its asset management business outside the United States, Fitzgibbon, who has a "sell" rating on the stock, said by phone.
The deal is expected to close in the first quarter of 2008 and Bank of New York Mellon sees the purchase adding to its cash earnings per share in the first year.
ARX specializes in Brazilian multi-strategy, long/short and long only investment strategies and has more than $2.6 billion in assets under management, a company statement said.
ARX will be integrated with BNY Mellon Asset Management Brasil, Bank of New York Mellon said. Continuación...