MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, July 15, 2003 Spina Quashes State Street Sale Talk State Street officials took the opportunity of the firm's quarterly earnings call to try to quash rumors that the bank is for sale. Those rumors also pushed the spotlight away from one of the bank's worst financial quarters ever. The Boston-based firm said that it lost $23 million, or 7 cents a diluted share, in the second quarter. That compared to a profit of $178 million, or 54 cents a diluted share, during the same period in 2002. The losses were driven by the cost of the firm's recent voluntary buyout package. State Street added that its "baseline earnings" were 52 cents a share in the quarter, down from 56 cents a share a year earlier. The loss puts an end to one of the top track records in the stock market. State Street had put together a string of 103 consecutive quarters of profitability. The last quarterly loss reported by State Street was for the second quarter of 1977. Meanwhile David Spina told analysts that he wants the firm to remain independent. "I believe right now to be an independent enterprise is the best way to maximize that [shareholder] value," he told analysts. He also explained that a sale to Citigroup was not possible under terms of the CitiStreet joint-venture created by the two firms in 1999. That deal specifically blocks Citigroup from acquiring more than 5 percent of State Street's stock for 10 years, Spina said. He added, though, that the two firms have looked at ways to expand their cooperation through Citistreet. Spina also said that he intends to stay with the firm through his scheduled retirement in April 2008. Questions about his intent were raised in response to his heart surgery in May. "My doctors tell me my long-term prognosis is excellent," Spina told analysts, adding "my original plans to retire in April 2008 remain unchanged." Printed from: MFWire.com/story.asp?s=5500 Copyright 2003, InvestmentWires, Inc. All Rights Reserved |