MINNEAPOLIS, Feb 19, 2003 (BUSINESS WIRE) -- U.S. Bancorp (NYSE:USB) announced
today that it plans to spin off its wholly owned subsidiary, U.S. Bancorp Piper
Jaffray, to U.S. Bancorp shareholders. As a result, U.S. Bancorp shareholders
would receive shares of the new Piper Jaffray company in a tax-free stock
dividend distribution. It is anticipated that the spin-off will be completed in
the third quarter of 2003. Once the spin-off is completed, Piper Jaffray will be
owned 100 percent by U.S. Bancorp shareholders, with U.S. Bancorp holding no
continuing equity interest in the company. U.S. Bancorp is expecting to continue
to hold a subordinated debt interest in the new company of approximately $215
Jerry A. Grundhofer, chairman, president and chief executive officer of U.S.
Bancorp, commented, "With this spin-off we are providing our shareholders with
another avenue in which to benefit from their investment in our company. Our
decision to spin off the unit means we are moving the ownership of Piper Jaffray
from U.S. Bancorp directly to our shareholders."
Following the spin-off, Piper Jaffray will become an independent publicly traded
company. Andrew S. Duff, who currently is a vice chairman of U.S. Bancorp and
president and chief executive officer of the U.S. Bancorp Piper Jaffray unit,
will become president and chief executive officer of the new independent
company. This transaction remains subject to various conditions, approvals and
Duff noted, "This is a tremendous opportunity for all of Piper Jaffray. As an
independent company we will continue our culture of being committed to focused
client service and have the distinct competitive advantage of significant
employee ownership in the new Piper Jaffray."
U.S. Bancorp will continue to offer a comprehensive range of investment and
financial solutions through U.S. Bank, U.S. Bancorp Asset Management and U.S.
Bancorp Investments. U.S. Bancorp Piper Jaffray, through its Capital Markets and
Private Advisory Services operations, provide a full range of investment
products and services to individuals, institutions and businesses. The Piper
Jaffray unit currently has approximately 3,000 employees and more than 120
offices in 24 states across the country. For more information about U.S. Bancorp
Piper Jaffray, visit www.piperjaffray.com.
In 2002, U.S. Bancorp's capital markets division, which is primarily composed of
the Piper Jaffray unit, had average assets of $3.0 billion, generated revenues
of $737.3 million and contributed less than 1 percent of U.S. Bancorp's net
U.S. Bancorp, with assets in excess of $180 billion, is the 8th largest
financial services holding company in the United States. The company operates
2,142 banking offices and 4,604 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
Jerry A. Grundhofer will host a conference call to discuss the spin-off of Piper
Jaffray today, Wednesday, February 19, 2003, at 5:00 p.m. (CST). The call will
be available by telephone or on the Internet. To access the conference call,
please dial (800) 233-2795 and ask for the U.S. Bancorp conference call.
Participants calling from outside the United States, please dial (785) 832-1077.
For those unable to participate during the live call, a recording of the call
will be available from 8:00 p.m. (CST) on Wednesday, February 19, 2003 through
11:00 p.m. (CST) on Wednesday, February 26, 2003. To access the recorded message
dial (800) 945-0830. If calling from outside the United States, please dial
(402) 220-0669 to access the recording. A webcast of the conference call will
also be available via the Internet at www.usbank.com.
This press release contains forward-looking statements. Statements that are not
historical or current facts, including statements about beliefs and
expectations, are forward-looking statements. These forward-looking statements
cover, among other things, anticipated future expenses and revenue, and the
future prospects of the Company. Forward-looking statements involve inherent
risks and uncertainties, and important factors could cause actual results to
differ materially from those anticipated, including the following, in addition
to those contained in the Company's reports on file with the SEC: (i) general
economic or industry conditions could be less favorable than expected, resulting
in a deterioration in credit quality, a change in the allowance for credit
losses, or a reduced demand for credit or fee-based products and services; (ii)
changes in the domestic interest rate environment could reduce net interest
income and could increase credit losses; (iii) the conditions of the securities
markets could change, adversely affecting revenues from capital markets
businesses, the value or credit quality of the Company's assets, or the
availability and terms of funding necessary to meet the Company's liquidity
needs; (iv) changes in the extensive laws, regulations and policies governing
financial services companies could alter the Company's business environment or
affect operations; (v) the potential need to adapt to industry changes in
information technology systems, on which the Company is highly dependent, could
present operational issues or require significant capital spending; (vi)
competitive pressures could intensify and affect the Company's profitability,
including as a result of continued industry consolidation, the increased
availability of financial services from non-banks, technological developments,
or bank regulatory reform; (vii) acquisitions may not produce revenue
enhancements or cost savings at levels or within time frames originally
anticipated, or may result in unforeseen integration difficulties; and (viii)
capital investments in the Company's businesses may not produce expected growth
in earnings anticipated at the time of the expenditure. Forward-looking
statements speak only as of the date they are made, and the Company undertakes
no obligation to update them in light of new information or future events.
CONTACT: U.S. Bancorp
Steve Dale, 612/303-0784
Erin Freeman, 415/277-1595
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SOURCE: U.S. Bancorp