BOSTON--(BUSINESS WIRE)--Aug. 13, 2002--State Street Corporation
(NYSE: STT), the world's leading specialist in meeting the needs of
sophisticated global investors, today announced that it has entered
into a definitive agreement to sell its Corporate Trust business to
U.S. Bank, N.A., the lead bank of U.S. Bancorp (NYSE:USB).
Our decision to sell the Corporate Trust business reflects our
commitment to continually strengthening our focus on our core
businesses, said David A. Spina, chairman and chief executive officer
of State Street Corporation.
This transaction enables us to further
match our resources to opportunities where we can best leverage our
global presence and competitive advantage.
State Street's Corporate Trust business employs about 500 people.
U.S. Bank is expected to retain a majority of the employees.
This acquisition underscores our position as an industry leader
in providing world-class Corporate Trust services, said Jerry A.
Grundhofer, president and chief executive officer of U.S. Bancorp. "We
are committed to providing our new customers with the same high level
of quality services that they are accustomed to, and we are extremely
pleased to welcome State Street's talented Corporate Trust
professionals to the U.S.
Subject to regulatory approval, the transaction is expected to
close by year-end. State Street anticipates that the divestiture will
be neutral to earnings per share in 2003. Corporate Trust services
contribute approximately 3% of State Street's total revenue, primarily
in servicing fees. Under the terms of the agreement, the transaction
is valued at approximately $725 million, about 10% of which will be
escrowed pending the successful transition of the business.
State Street's Corporate Trust business includes serving as
trustee and paying agent for the issuance of taxable and non-taxable
securities, including the review of documents and indentures,
registration and authentication of bonds, receipt and disbursement of
bond sale proceeds, successor trusteeships, escrow account services
and transfer and paying agency services. It also includes bond
administration, escrow services, investment banking, loan portfolio
services, mortgage and asset-backed securities, and structured finance
State Street Corporation (NYSE: STT) is the world's leading
specialist in providing sophisticated global investors with investment
servicing and investment management. With $6.2 trillion in assets
under custody and $770 billion in assets under management, State
Street is headquartered in Boston, Massachusetts and operates in 22
countries and over 100 markets worldwide. For more information, visit
State Street's web site at www.statestreet.com.
Minneapolis-based U.S. Bancorp, with assets in excess of $173
billion, is the 8th largest financial services holding company in the
United States. The company operates 2,131 banking offices and 4,818
ATMs, and provides a comprehensive line of banking, brokerage,
insurance, investment, mortgage, trust and payment services products
to consumers, businesses and institutions. U.S. Bancorp is home of the
Five Star Service Guarantee which assures customers of certain key
banking benefits and services or customers will be paid for their
inconvenience. U.S. Bancorp is the parent company of U.S. Bank. Visit
U.S. Bancorp on the web at usbank.com.
This news release may contain forward-looking statements, as
defined by U.S. securities laws. Any such statements are based on
current expectations and involve a number of risks and uncertainties.
Important factors, including those mentioned in this news release,
that could cause actual results to differ materially are set forth in
State Street's annual report and subsequent SEC filings. They include
risks and uncertainties relating to the value of global and regional
financial markets and the pace of worldwide economic growth. State
Street encourages investors to review its annual report and SEC
filings in conjunction with this announcement and prior to making any
investment decision. Any forward-looking statements contained in this
news release speak only as of the date of release, August 13, 2002,
and the company does not undertake to revise such forward-looking
statements to reflect events after the date of this release.
CONTACT: State Street Corporation
Hannah Grove, 617/664-3377
INDUSTRY KEYWORD: BANKING
SOURCE: State Street Corporation
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