CIBC, U. of California settle Enron suit

OAKLAND, Calif. — The University of California secured a $2.4 billion settlement from the Canadian Imperial Bank of Commerce for its role as an adviser to Enron Corp. If approved, it would be the third large settlement the university has won as lead plaintiff representing Enron investors. The university alleged that "CIBC participated in an elaborate scheme to defraud investors," a UC press release said.

"With this CIBC settlement, UC has now recovered more than $7 billion for investors —more than any other securities case in history," said James E. Holst, the university's general counsel, in the news release. That figure tops the $6.1 billion recovered in the WorldCom Inc. litigation.

CIBC did not admit to any wrongdoing, according to the release, which also said the bank "agreed to the settlement solely to eliminate the uncertainties, burden and expense of further protracted litigation."

CHICAGO — Nuveen Investments plans to acquire Santa Barbara Asset Management, which manages $2.8 billion in growth equities for institutions and high-net-worth investors, said spokesman Christopher Allen.

Mr. Allen said terms will not be disclosed beyond a $50 million cash payment; the deal is expected to close within 60 days. The acquisition "fits into our overall strategy, which is to make a broader selection of equity offerings available," Mr. Allen said.

Mr. Allen said Nuveen manages approximately $124 billion in assets.

Alliance Capital Management Holding, New York, reported $516 billion in assets under management at the end of the second quarter, a 7% increase from a year ago, according to a company news release.

The company attributed the growth to equity market appreciation as well as net asset inflows. For the quarter, long-term net asset outflows totaled $1 billion. The firm reported net asset outflows of $2.2 billion in its retail business, and $300 million in its institutional investment management business, according to the release. The outflows were partially offset by net asset inflows of $1.5 billion in the firm's private client business. Lewis Sanders, chairman and CEO of Alliance Capital, said in the release that while equity inflows accelerated in its institutional business, there was an "unusual level of attrition in fixed-income mandates." John Meyers, Alliance spokesman, declined to elaborate.

Franklin Resources, San Mateo, Calif., has $425.4 billion in assets under management as of June 30, up from $412.1 billion the previous quarter and $350.8 billion for the year ended June 30, 2004, according to a news release. Equity assets made up 57% of the total; fixed income, 24%; and hybrid assets, 17%. That compares with 56% equity, 27% fixed income and 16% hybrid as of June 30, 2004. Sales exceeded redemptions by $7.7 billion for the current quarter. Net income for the quarter was $261.9 million, up from $173.9 million a year before, and revenue totaled $1.1 billion, compared with $867.8 million a year early.

TRENTON, N.J. — New Jersey Division of Investment will liquidate an estimated $1 billion of its investments after Richard J. Codey, acting governor, signed legislation directing the state treasury to divest pension fund assets invested in companies doing business with Sudan, according to Tom Vincz, spokesman for treasurer John McCormac.

Mr. Vincz said the $70 billion pension system would reallocate the assets to other investments. He said the divestiture would occur over three years and added there is "no immediate decision in the offing as to how to reallocate the estimated $1 billion in holdings."