Federated buying some Alliance money market funds

Alliance Capital Management will sell a portion of its money market fund business to Federated Investors, the two companies announced today. The transaction, which is due to be completed between the first and third quarters of 2005, will move a total of $29 billion from 22 Alliance money market funds that are distributed through third parties to 21 Federated funds with similar styles, raising Federated's money market assets under management to $154.5 billion, according to Federated's news release. Federated said it will pay Alliance $25 million up front, with additional annual payments over the next five years based on the level of revenues. At current levels, those additional payments would come to roughly $103 million, Federated said.