U.S. Trust Corp. has agreed to sell its custody, unit trust and mutual fund services units to Chase Manhattan Bank for Chase stock worth $363.5 million.
U.S. Trust's other businesses - including asset management, private banking, corporate trust and other subsidiaries - will be spun off into a new holding company, which will include a new bank subsidiary, United States Trust Co. of New York.
H. Marshall Schwartz, chairman and chief executive officer of U.S. Trust, New York, said the sale will allow U.S. Trust to concentrate on its core businesses: asset management, private banking and corporate trust services.
The deal gives Chase $125 billion in custody assets and 300 clients from U.S. Trust, as well as new technology and service capabilities for unit trusts and mutual funds. Under the agreement, Chase agreed to provide U.S. Trust with processing services for its businesses.
Chase officials said the company will integrate the new acquisitions into its global securities services unit. After the deal is completed, they said Chase will be the world's largest custodian, with worldwide trust and custody assets totaling $1.8 trillion.
The sale, to close in mid-1995, is subject to approval by the Federal Reserve, banking authorities and U.S. Trust shareholders.