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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 1, 1998
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Salomon Smith Barney Holdings Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-4346 22-1660266
_________ ______ __________
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
388 Greenwich Street, New York, New York 10013
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(Address of principal executive offices) (Zip Code)
(212) 816-6000
_____________________________________________________________________
(Registrant's telephone number, including area code)
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SALOMON SMITH BARNEY HOLDINGS INC.
Current Report on Form 8-K
ITEM 5. OTHER EVENTS.
On June 1, 1998, Travelers Group Inc. ("Travelers Group"), the parent
Salomon Smith Barney Holdings Inc., and The Nikko Securities Co., Ltd. ("Nikko")
announced their intention to form a global strategic alliance.
The proposed agreement calls for the formation of a joint venture, to be
called Nikko Salomon Smith Barney Limited, which will provide investment
banking, sales and trading and research services for corporate and institutional
clients in Japan and overseas. It will combine the Japanese institutional and
corporate business of Salomon Smith Barney with Nikko's domestic and
international institutional and corporate business. Nikko's retail business and
other activities, including asset management, will remain under Nikko's
management.
Nikko Salomon Smith Barney will be owned 51% by Nikko and 49% by Salomon
Smith Barney. It has been proposed that Yuji Shirakawa of Nikko Research Center
serve as Chairman, that Toshiharu Kojima of Salomon Smith Barney serve as the
Chief Executive Officer, and that Jun Okano from Nikko be Joint Chief Executive
Officer reporting to Mr. Kojima. Its Board will have six members, with equal
representation from both firms.
Nikko Salomon Smith Barney will be headquartered in Tokyo and will
maintain offices and staff worldwide. Nikko Securities intends to review its
overall international operations in order to maximize the potential for synergy
and further integration with Salomon Smith Barney's operations worldwide.
A definitive joint venture agreement is expected to be signed by the end
of August 1998, and it is anticipated that the joint venture will be
operational in January 1999, subject to applicable regulatory approval.
In addition, Travelers Group will purchase 9.5% of Nikko's outstanding
common stock, plus bonds convertible into an additional 15.5% common equity
interest in Nikko on a fully diluted basis, for a purchase price of
approximately 220 billion Yen or $1.6 billion.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: June 8, 1998
SALOMON SMITH BARNEY HOLDINGS INC.
By: /s/ Charles W. Scharf
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Charles W. Scharf
Chief Financial Officer
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