NU Online News Service, July 30, 2004, 1:23 p.m. EDT

A unit of New York Life Insurance Company has agreed to acquire a fixed-income asset management business from Pareto Partners, London.[@@]

MacKay Shields L.L.C., the New York Life unit, will be getting a business that manages about $3 billion in high-rated and low-rated debt securities.

The price of the deal and other terms were not available.

Mellon Financial Corp., Pittsburgh, now owns 30% of Pareto Partners. Pareto employees own 40%, and XL Capital Ltd., Hamilton, Bermuda, own 30%.

In related news, Mellon announced today that it has agreed to acquire the remaining 30% of Pareto Partners that it does not currently own. The deal includes a Pareto Partners currency management business with $35 billion in assets and a global fixed-income unit that manages $3 billion in debt securities. The global fixed-income business is separate from the fixed-income unit that New York Life is acquiring.

Pareto Partners hopes to complete the Mellon and New York Life deals by Sept. 30.