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[STATE STREET LOGO] NEWS RELEASE
Immediately
STATE STREET BOSTON CORPORATION For Release: George A. Russell
225 FRANKLIN STREET Contact: 617/654-3866
BOSTON, MASSACHUSETTS 02101
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Investors & analysts
Susanne G. Clark
617/654-3477
STATE STREET TO ACQUIRE
INVESTORS FIDUCIARY TRUST COMPANY
Boston, Massachusetts...July 19, 1994
State Street Boston Corporation (State Street) announced today that it has
signed a letter of intent with DST Systems, Inc. (DST) and Kemper Financial
Services, Inc. (Kemper) to acquire Investors Fiduciary Trust Company (IFTC), of
Kansas City, Missouri. The letter of intent provides that the acquisition
would be completed by an exchange of State Street Common Stock, valued at $225
million, for the assets of IFTC's holding company, consisting of the equity of
IFTC and other assets. IFTC is jointly owned by DST and Kemper. State Street
intends to account for the transaction as a pooling.
Under the letter of intent, the parties will proceed immediately with due
diligence and the negotiation of a definitive acquisition agreement. In
addition, completion of the acquisition will be subject to regulatory approvals
and other usual conditions.
IFTC provides custodial and fund accounting services to mutual funds, unit
investment trusts, insurance portfolios and bank portfolios. As of June 30,
1994, IFTC had approximately $130 billion in assets under custody from over
fifty customers and, with its parent on a consolidated basis, has total assets
of $787 million and stockholders' equity of $101 million.
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State Street Boston Corp.
Acquisition
July 19, 1994
Russell -- 617/654-3866
Page 2
Commenting on the proposed acquisition, Marshall N. Carter, Chairman and Chief
Executive Officer of State Street, said, "The acquisition of IFTC will
strengthen State Street's leadership position in servicing financial assets
worldwide. IFTC will bring additional customers and different systems
solutions to the servicing market. The acquisition will position State Street
well for long term earnings growth, and we expect no material effect on
earnings per share in the early years. We plan to operate IFTC as an
independent trust company based in Kansas City with the current management
team. We look forward to a new servicing relationship with Kemper and to
developing further our long-standing relationship with DST."
IFTC will operate as a separate subsidiary, reporting to Ronald E. Logue,
Executive Vice President of U.S. Mutual Fund Services for State Street.
Commenting on the proposed acquisition, Gerard Lavin, President and CEO of IFTC
said, "We are delighted with the prospects for IFTC, our customers and
employees. We are pleased to become associated with the premier company in the
industry, which will add to IFTC's capabilities. We look forward to continuing
to provide excellent service and, with State Street's assistance, providing a
broader array of services to our customers."
With $1.6 trillion in assets under custody and $139 billion in assets under
management, State Street is a leading servicer of financial assets worldwide.
State Street's assets under custody include $669 billion of mutual fund assets.
As of June 30, 1994, State Street had total assets of $21.8 billion and
stockholders' equity of $1.2 billion. Services are provided from offices in 32
global locations in the United States, Canada, Grand Cayman, Netherlands
Antilles, United Kingdom, France, Belgium, Luxembourg, Germany, United Arab
Emirates, Hong Kong, Taiwan, Japan, Australia, and New Zealand. State Street
provides shareholder accounting services through Boston Financial Data
Services, Inc., a subsidiary formed in 1974, that is owned jointly with DST.
State Street is traded on NASDAQ under the symbol STBK.
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