Mutual fund back-office provider DST Systems
has retained Bank of America Merrill Lynch
and Skadden Arps, Slate, Meagher & Flom LLP
as advisors to help the board in its ongoing review of the firm's business plan, assets and investment portfolio. Stinson Morrison Hecker LLP
serves DST's legal advisor.
Also in its press release issued Friday, Kansas City, Missouri-based DST said its board turned down the proposal from Russell Glass
, founder of RDG
, to "negotiate the purchase by RDG Capital of the Company’s 10.3 million shares of State Street Corporation,"
adding that "it would not be prudent to consider a sale of the company's State Street stock at this time"
because the board and its advisors will be reviewing all assets, including its investment portfolio.
The board also rejected Glass' request that he and two additional board members be appointed directors
of the company.
Fundsters may recall that in June, Glass told Reuters
that he and a private equity firm had approached DST's management to discuss a buyout of the company and they were rebuffed.
Glass at the time also told the wire service that DST turned down an offer from another
private equity shop. He called on DST's management to hire an investment banker to explore strategic alternatives.
Company Press Release
DST SYSTEMS BOARD OF DIRECTORS RETAINS
Company Comments on Composition of Board of Directors
KANSAS CITY, MO (August 5, 2011) - The Board of Directors of DST Systems, Inc. (NYSE: DST) is
continuing its long-standing practice of engaging in an ongoing review of the Company’s business plan,
assets and investment portfolio. The Company today announced that BofA Merrill Lynch and Skadden,
Arps, Slate, Meagher & Flom LLP have been retained as independent advisors to assist the Board in this
ongoing review. Stinson Morrison Hecker LLP is acting as legal advisor to the Company.
In addition, based upon the number of its independent directors, their level of skill, expertise and
experience with the Company and other factors, the Board of Directors has determined that it would not
be beneficial to change its current composition and has declined Russell Glass' request that he and two
additional board members be appointed as directors of the Company.
The Board also noted that it has declined Mr. Glass' proposal to negotiate the purchase by RDG Capital
of the Company's 10.3 million shares of State Street Corporation. As the review by the Company's
Board and its advisors will include all assets including its investment portfolio, it would not be prudent
to consider a sale of the Company's State Street stock at this time. The Company also believes that the
market provides sufficient liquidity to effect an orderly sale should the Company choose to do so.
DST noted that there can be no assurance that the Board will make any determination other than the
continuation of the Company's ongoing business plan as a result of the Board’s review. DST does not
intend to comment on the Board's review unless and until the Board makes a determination when the review process is completed.
About DST Systems, Inc.
DST Systems, Inc. provides sophisticated information processing and computer software services and
products that help clients improve productivity, increase efficiency, and provide higher levels of
customer service. For more information, please visit the Company's website at www.dstsystems.com.
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