The spin-off of Ameriprise Financial, formerly American Express Financial Advisors, from American Express Co. is expected to cost $945 million, reports Reuters
The brunt, or $875 million of the total, will be born by Ameriprise. American Express will bear $70 million of the costs, approximately $50 million in 2005. Ameriprise will incur approximately two-thirds of the cost by the end of 2006.
The spin-off, which includes American Express' proprietary funds and asset management, is expected to be completed in the third quarter of this year.
Ameriprise's asset management, insurance, annuity and distribution groups will go by the name RiverSource.
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