Bisys investors approve buyout by Citi |
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Fri, 27 Jul 2007 20:53
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ROSELAND, N.J. (AP) - Bisys Group Inc., which provides outsourcing services to the financial services sector, said Friday its shareholders have approved the company's acquisition by a subsidiary of Citibank for $1.45 billion.Bisys said about 69 percent of its outstanding shares were cast in favor of the takeover.On May 1, Citi agreed to buy Bisys in an $11.85 per share deal meant to bolster the New York-based bank's services for private equity investors, mutual funds and hedge funds. At the deal's closing, Bisys will pay a 15 cent dividend, bringing the total value to Bisys shareholders to $12 per share.Citi plans to break up Bisys' insurance and retirement services businesses and sell them to private equity fund J.C. Flowers & Co. After that sale, the total cost of the deal to Citi will be about $800 million.Citi will combine Bisys' fund services and alternative investments segments with the bank's financial services and capital markets outsourcing business.The deal is expected to close on Aug. 1.In afternoon trading, Bisys shares gained 5 cents to $11.92 and Citigroup shares fell 53 cents to $47.28.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Citigroup to buy Automated Trading Desk 