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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): May 11, 1999
THE ADVEST GROUP, INC.
(Exact name of Registrant as specified in its charter)
Delaware 1-8408 06-0950444
(State or other juris- (Commission (IRS employer
diction of incorporation) file number) identification no.)
90 State House Square, Hartford CT 06103
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (860) 509-1000
No change
(Former name or former address, if changed since last report)
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Exhibit Index on Page 3
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Item 5. Other Events.
On May 11, 1999, The Advest Group, Inc. issued a news release
reporting that it will enter into a strategic alliance with Hudson
United Bancorp. As more fully described in the news release, Hudson
United Bank will become the exclusive provider of banking products
and services to clients of Advest, Inc. and will acquire the loans
and other financial assets and assume the deposit liabilities of
Advest Bank and Trust.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(c) Exhibits:
99 News release dated May 11, 1999
SIGNATURES
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.
THE ADVEST GROUP, INC.
Date: May 11, 1999 By: /s/ MARTIN M. LILIENTHAL
Martin M. Lilienthal
Chief Financial Officer
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EXHIBIT INDEX
Number Exhibit Page No.
99 News release dated May 11, 1999 4
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Exhibit 99
Contact: Grant Kurtz, President and Chief Executive Officer
Martin Lilienthal, Executive Vice President
and Chief Financial Officer
(860) 509-1000 ext. 2339
The Advest Group, Inc. Announces Strategic Alliance
with Hudson United Bank
Hartford, CT May 11, 1999 -- The Advest Group, Inc. (NYSE:
ADV) today announced that it will enter into a strategic alliance
with Hudson United Bank, a subsidiary of Hudson United Bancorp.
Under this alliance, Hudson United Bank will become the exclusive
provider of banking products and services to clients of Advest, Inc.,
The Advest Group, Inc.'s broker-dealer subsidiary. Advest, Inc. will
receive an annual fee and additional compensation for certain
products and services placed under this arrangement. The initial
term of this agreement will be four years, subject to extension or
termination under certain circumstances, including a change of
control of either party.
Under a separate purchase and sale agreement entered into today,
Hudson United Bank will acquire the loans and other financial assets
and assume the deposit liabilities of Advest Bank and Trust. When
the agreements have become effective, Advest Bank will end its
mortgage origination operations but will retain its bank charter and
continue to provide trust and custody services. The purchase and
sale transaction is subject to regulatory approval and is expected to
close within 90 to 120 days.
"Hudson United Bancorp is a high quality financial institution
and we are pleased to partner with them in providing an attractive
array of bank products and services to our clients," said Grant
Kurtz, President and Chief Executive Officer of The Advest Group,
Inc. "This transaction allows us to reduce costs, focus on our core
businesses, and redeploy capital into existing businesses with higher
returns. Advest Bank and Trust will continue in its trust business
which more closely supports the activities of Advest, Inc., our
broker-dealer."
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The Advest Group, Inc.
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Advest Bank and Trust is currently required to maintain certain
minimum capital levels in order to offer lending and deposit
services. Under the new arrangement, Advest Bank's capital
requirements will be significantly lower, enabling approximately
$12.0 million of its capital to be redeployed. It is expected that
most of these funds will be invested in Advest, Inc. for the purpose
of reducing the broker-dealer's short-term borrowings. Excluding the
interest savings anticipated from the capital redeployment, the
purchase and sale transaction will result in a pre-tax profit of
approximately $500,000, after anticipated severance costs. However,
the after tax impact will be a non-recurring charge of approximately
$600,000 as a result of tax implications related to the reversal of
Advest Bank's loan loss reserves.
"We are excited about the opportunities these agreements will
provide for both Advest and our clients," Mr. Kurtz said. "The
strategic alliance with Hudson United will enable us to continue
providing a high level of service to our clients and a broader array
of product offerings. At the same time, the ability to redeploy
capital currently committed to the Bank will favorably impact current
earnings and new business development."
These transactions will result in a reduction of 45 positions at
Advest Bank and Trust. However, it is expected that many of the
employees affected will be offered positions elsewhere within The
Advest Group, Inc. or Hudson United. Hudson United has indicated
that it will give employees of Advest Bank priority consideration for
job opportunities at its various locations, which include 44
Connecticut offices.
Hudson United Bancorp (NYSE: HU), a commercial bank holding
company based in Mahwah, New Jersey, has assets of $7.0 billion and
over 160 offices located in New Jersey, Connecticut and New York.
The Advest Group, Inc. is a diversified financial services
company which, through its principal subsidiary, Advest, Inc.,
provides brokerage, investment banking and asset management services
to retail and institutional investors through 89 sales offices in 16
states and Washington, DC. Advest Bank and Trust provides trust and
custody services primarily through Advest, Inc.'s branch network.
For more information, please visit our Internet site at
www.advest.com.
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