NU Online News Service, March 23, 2004, 2:02 p.m. EST – The Phoenix Companies Inc., Hartford, has agreed to sell its retail broker-dealer operations to Linsco/Private Ledger Corp., San Diego.[@@]
Phoenix has not announced the price of the deal or other financial terms, but it says Linsco has signed a separate agreement that calls for Linsco to sell Phoenix life, annuity and asset-management products.
Linsco would ask advisors who work with 2 Phoenix units, WS Griffith Securities Inc. and Main Street Management Company, to become independent registered representatives for Linsco.
Phoenix says it is selling the broker-deal operation and negotiating the Linsco distribution agreement so that it can become a “pure manufacturer” of financial products for wealthy and affluent individuals.
Phoenix now will focus on serving outside advisors, according to Phoenix Chairman Dona Young.
Phoenix and Linsco hope to complete the deal around June 1.
The deal would lead to about $8 million in restructuring charges and other charges, but it should increase annualized net, pre-tax earnings by at least $10 million, Phoenix says.