PacTel trades mall stake
Pacific Telesis Group has become the second largest institutional shareholder in Taubman Realty Group, a public REIT, by trading its 75% stake in a Michigan mall for 6.1 million shares of Taubman stock.
Taubman was co-owner in Fairlane Town Center with the $14.6 billion pension fund.
PacTel officials and the pension fund's real estate adviser, The Yarmouth Group, were unavailable for comment.
According to Keith Pomeroy of SNL Securities, a financial information firm, PacTel's equity interest in the mall was valued at $65.6 million. Taubman also assumed mortgage debt of about $26 million, which was PacTel's portion of a $34.6 million mortgage on the mall.
BellSouth exec quits
James Meynard, director of trust investments with the $18.7 billion BellSouth pension fund, is leaving to start Sagewood Capital, an emerging markets fund of funds that will invest in public and private equity investments.
Sagewood will be a joint venture between Mr. Meynard and Investment Research Co. Mr. Meynard will be responsible for investing in emerging market private equity funds; Investment Research's risk optimization model will be used to make public equity investments.
BellSouth Managing Director Kincaid Patterson was unavailable for comment.
PBGC takes over plan
The PBGC took over the McLouth Steel Products Corp. pension plan, which was underfunded by about $25 million.
The pension plan had assets of about $58 million and liabilities of about $73 million. The company filed for Chapter 11 protection from creditors in September 1995. Its assets were sold last week to Hamlin Holdings Inc.; the new owners are not taking over the plan.
Virginia makes RF&P deal
Virginia Retirement System has agreed to contribute slightly more than half the assets of its real estate affiliate, RF&P Corp., to a new partnership between the $22 billion pension fund and developer Charles E. Smith Cos.
The partnership, which will include RF&P's income-producing real estate assets, will subsequently become a public REIT. No market value of the pension fund's contribution was given.
Through RF&P, the pension fund will continue to own and manage the remainder of RF&P's assets but still will entertain offers from potential buyers for that property.
Court rules for funds
An Illinois Appeals Court ruling against the state Aug. 13 could result in $2 billion to $3 billion in added contributions to five state pension funds.
The class-action suit was filed on behalf of participants in the State Universities Retirement System, the Teachers' Retirement System and three funds managed by the Illinois State Board of Investment.
The plaintiffs' attorney, Clinton Krislov, said the pension funds were denied the assets between 1989 and 1994. Representatives for affected pension funds said the state ignored a pension funding law passed in 1989, then repealed the law in 1994.
A spokesman for Illinois Gov. Jim Edgar, who is a defendant in the suit, said the case will be appealed to the state Supreme Court. If the Supreme Court doesn't hear it, a circuit court would decide how much the state owes the funds.
The lower court had ruled for the state.
Arbella taps Price
Arbella Mutual Insurance Co. is switching to T. Rowe Price Services as bundled service provider for its $14 million 401(k) plan and $11 million money purchase profit-sharing plan.
Thomas A. Kearney, retirement benefits coordinator, said the company will offer eight investment options, up from five. CIGNA was the previous provider.
Segal Co., and its consulting affiliate, Segal Advisors, assisted.
Burroughs Wellcome hires
The Burroughs Wellcome Fund hired Cohen, Klingenstein & Marks to run a $60 million domestic large-cap growth stock portfolio for the $430 million foundation. Funding will come from terminating another manager, said Scott Schoedler, vice president of finance. He did not name the firm.
Charities Aid taps Midland
The Charities Aid Foundation and its banking subsidiary, CafCash Ltd., hired Midland Securities Services as custodian for 150 million ($232.5 million) in U.K. assets.
CafCash is a short-term fund for some 2,800 charities that invest assets with the foundation. Total foundation assets as of April 30 were 427 million ($662 million).
Stadlinger joins Provident
Christian K. Stadlinger joined Provident Capital Management as lead small-cap value manager. He fills the job of the late Susan Menzies. Ms. Menzies joined Brandywine Asset Management in July; she died earlier this month.
Mr. Stadlinger was a portfolio manager at Morgan Stanley Asset Management, where he has not yet been replaced.