AllianceBernstein to buy small investment manager

|About: AllianceBernstein Holdin... (AB)|By:, SA News Editor

AB is paying $12 per share in cash for W.P. Stewart (WPSL.PK), plus the issuance of contingent value rights (CVRs) worth $4 per share should Stewart's AUM reach $5B before the 3rd anniversary of the deal's closing. Stewart currently has $2B in AUM (vs. AB's $444B).

The immediate cash portion of the deal is a 66% premium to this afternoon's close. The cash portion alone puts the deal's value at about $60M.