<PAGE>
EXHIBIT (c)(3)
Confidential
Presentation to:
The Independent Directors Committee
of the Board of Directors of Phoenix
Investment Partners, Ltd.
DISCUSSION MATERIALS
August 10, 2000
<PAGE>
PROJECT GRISWOLD
Disclaimer
CONFIDENTIAL MATERIALS PRESENTED TO THE INDEPENDENT DIRECTORS COMMITTEE OF THE
BOARD OF DIRECTORS OF PHOENIX INVESTMENT PARTNERS, LTD. ("PXP" OR THE "COMPANY")
The following pages contain material provided to the Independent Directors
Committee of the Board of Directors of PXP. The basic information utilized in
preparing this study was obtained from PXP and public sources. Estimates and
projections for PXP used herein have been prepared by PXP, or are from public
sources, and were not prepared by Salomon Smith Barney. Such estimates and
projections involve numerous and significant subjective determinations, which
may or may not prove to be correct. No representation or warranty, express or
implied, is made as to the accuracy or completeness of any information contained
herein and nothing contained herein is, or shall be relied upon as, a promise or
representation, whether as to the past or the future. Because this material was
prepared for use in the context of an oral presentation to the Independent
Directors Committee of the Board of Directors of PXP, which is familiar with the
business and affairs of PXP, none of PXP or Salomon Smith Barney or any of their
respective legal or financial advisors or accountants take any responsibility
for the accuracy or completeness of any of the material contained herein if used
by persons other than the Independent Directors Committee of the Board of
Directors of PXP. Neither PXP nor Salomon Smith Barney undertakes any obligation
to update or otherwise revise the accompanying materials. The materials
contained herein supersede in their entirety any previous drafts of presentation
materials relating to the subject matter hereof.
<PAGE>
PROJECT GRISWOLD
Table of Contents
<TABLE>
<S> <C>
1 INTRODUCTION
2 BUSINESS OVERVIEW
3 COMPARISON WITH PEERS
4 VALUATION CONSIDERATIONS
APPENDIX
</TABLE>
<PAGE>
PROJECT GRISWOLD
1 INTRODUCTION
<PAGE>
PROJECT GRISWOLD
Introduction
* On July 24/th/, 2000, Phoenix Home Life Mutual Insurance Company
("PHL") offered to purchase all of the outstanding shares of Phoenix
Investment Partners, Ltd. ("PXP" or the "Company") for a cash price of
$12.50 per share
. PHL is not interested in selling its interest in PXP
. PHL seeks an agreed transaction
. Stock has traded above $14.00 since that time
* Since that time, SSB has conducted due diligence
. PXP management
. PHL management
. PHL financial advisor
* Several important details of the offer have not yet been specified
. Form of transaction: Merger or tender offer
. Acceptance threshold
. Mechanics for convertible securities/options
* This presentation will assist the Independent Directors Committee's
evaluation of PHL's initial offer
. Review of PXP
. Comparison with selected peers
. Alternative valuation methodologies
. Salomon Smith Barney's view of the adequacy of PHL's initial
offer
Phoenix Home Life Mutual Insurance Company is seeking to take Phoenix
Investment Partners private.
<PAGE>
PROJECT GRISWOLD
Summary of Initial Proposal
<TABLE>
<CAPTION>
ITEM OFFER TERMS COMMENTS
<S> <C> <C>
Transaction PHL to purchase all of the outstanding Based on discussion with Morgan Stanley, PHL
shares of common stock of PXP that it also intends:
does not currently own (18.0 million (i) to purchase 5.1 million shares underlying
shares). debentures it does not own, and
(ii) to "cash out" all options (approximately
8.3 million in total.)
Price Per Share $12.50 --
Value of Shares to be Purchased $225 Million $323 Million /(a)/
Form of Consideration 100% Cash To be financed internally
Offer Price / 2000 Earnings/(b)/ 16.4x
Firm Value as a Multiple of/(b)(c)/:
As % of AUM 1.5%
LTM Revenues 3.0x
LTM EBITDA 8.0
Premium to Market:
Closing Price, 7/24 ($10.81) 15.6%
52-Week High, 7/10 ($12.06) 3.6
One-Week Prior to Offer, 7/17 ($11.25) 11.1
Four-Weeks Prior to Offer, 6/26 ($9.69) 29.0
</TABLE>
___________________________________
(a) Reflects the conversion of all options and convertibles using the treasury
method.
(b) Assumes conversion of convertible debt and exercise of all options. Adjusted
for Seneca minority interest.
(c) Adjusted for Engemann liability.
<PAGE>
PROJECT GRISWOLD
Phoenix Home Life - Buy-in Rationale
STRATEGIC RATIONALE - BASED ON CONVERSATIONS WITH PHL MANAGEMENT
* PHL is redefining its business model towards wealth management
. PXP is an integral component of PHL's wealth management strategy:
Life, Annuities, Asset Management
. Divestiture of non-core lines: Group L&H, Life Reinsurance, P&C
Distribution, Real Estate Management
* As a wholly-owned subsidiary of PHL, PXP will have additional
operating flexibility
. Increased flexibility to pursue additional acquisition
opportunities (reduced leverage constraints)
. Enhanced ability to sell variable annuity product
* Full ownership of PXP may improve PHL's pending IPO valuation
. Increase relative contribution of asset management segment
earnings (valued at a higher multiple than insurance earnings)
. Reduce complexity of PHL IPO story
. Increasing importance of variable annuities in a demutualized
environment
* Utilize PHL available capital/excess debt capacity
. No issuance required
. Eliminate sharing of PHL guarantee with PXP shareholders
. Offset PXP leverage constraints
* PXP public ownership, which provided currency for acquisitions and
management compensation, is less important
<PAGE>
PROJECT GRISWOLD
. Public valuation limited negative impact on statutory capital:
Contemplated transaction has minimal impact on PHL risk-based
capital ratios
. Pending IPO, supplemented by phantom equity plan for PXP, reduces
PXP's need for a publicly-traded currency
<PAGE>
PROJECT GRISWOLD
2 BUSINESS OVERVIEW
<PAGE>
PROJECT GRISWOLD
Overview
BACKGROUND
* Phoenix Investment Partners was formed in 1995 through the merger of Phoenix
Securities Group (a wholly-owned subsidiary of Phoenix Home Life Mutual
Insurance Company, "PHL") and Duff & Phelps Corporation
. PHL owns approximately 60% of PXP (50% assuming exercise of all options
and convertibles)
* PXP's operating structure allows its eight investment partners to focus on
research and investments. As of 6/30/00, the Company had almost $61 billion
in AUM (including approximately $10 billion from PHL), declining from $65
billion at 12/31/99.
. Sales / marketing and back-office functions are largely centralized
<TABLE>
PXP
---------------------------------------------------------------------------------------------------
Institutional Private Client
Alternative Group
7 Salespeople, Financial Products
Chicago based 37 Salespeople,
Hartford based
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PIC /(1)/ Aberdeen /(2)/ Goodwin Hollister Oakhurst Duff & Phelps Engemann Zweig Seneca /(3)/
$17.5 B AUM $0.8 B AUM $3.2 B AUM $1.3 B AUM $3.8 B AUM $9.6 B AUM $11.8 B AUM $2.9 B AUM $10.9 B AUM
</TABLE>
Source: Company Data, SEC Filings
(1) Includes PHL AUM
(2) Subadvised for Aberdeen via PIC and Duff & Phelps
(3) Approximately 75% owned
6/30/00 AUM: $60.8
Equity: 49%
Balanced: 17%
Fixed Income: 33%
Money Market: 1%
Retail: 52%
Institutional: 48%
Domestic: 99%
International: 1%
<PAGE>
PROJECT GRISWOLD
Description of PXP's Investment Partners
<TABLE>
<CAPTION>
PHOENIX INV. DUFF & ROGER
COUNSEL PHELPS SENECA ENGEMANN ZWEIG
<S> <C> <C> <C> <C> <C>
Date Acquired --- 4Q 1995 1Q 1997 2Q 1997 1Q 1999
AUM Detail
6/30 AUM $ 25.7 B $ 9.6 B $ 10.9 B $ 11.8 B $ 2.9 B
% of Total 42.3 % 15.8 % 17.9 % 19.4 % 4.7 %
Growth vs. 6/99 7.1 (20.1) /(1)/ 60.4 32.9 (22.8)
Client Mix
Open-End Funds 39 % 2 % 0 % 16 % 43 %
Managed Accounts 0 7 8 84 0
Closed-end Funds 0 33 0 0 48
Separate Accounts/(2)/ 26 58 92 0 8
General Accounts 35 0 0 0 0
Asset Mix
Fixed Income 40 % 43 % 52 % 0 % 0 %
Equity 35 18 48 95 93
Balanced 23 39 0 5 0
Money Market 1 0 0 0 7
Brands Aberdeen, Duff & Phelps Seneca Engemann Zweig
Goodwin,
Hollister,
Oakhurst, PIC
Revenue Detail
12/99 Revenues $ 88.9 M $ 48.0 M $ 36.7 M $ 59.7 M $ 26.9 M /(3)/
% of Total 34.2 % 18.4 % 14.1 % 22.9 % 10.3 %
Growth vs. 98 8.2 % 10.1 % 45.6 % 32.1 % (16.1)% /(4)/
Other Data
Employees 48 65 63 86 44
Portfolio Managers 15 8 7 3 3
Research Analysts 11 11 9 6 5
</TABLE>
(1) Excludes impact of sale of Cleveland office.
(2) Includes Alternative Financial Products, Aberdeen Funds and Edge (Variable)
products.
(3) Based upon 10 months ended December 31, 1999.
(4) CAGR based upon quarterly growth from 9/30/99 to 6/30/00.
PXP has a diversified investment organization.
<PAGE>
PROJECT GRISWOLD
Business Model
<TABLE>
<CAPTION>
Distribution Strategy Mutual Funds Managed Accounts Closed End Funds Separate Accounts
<S> <C> <C> <C> <C>
Intermediated
-------------
---------------------------------------------------------------------------------------------------------------------
Banks X
---------------------------------------------------------------------------------------------------------------------
Broker Dealers X X X
---------------------------------------------------------------------------------------------------------------------
401(k) X
---------------------------------------------------------------------------------------------------------------------
RIAs X X
---------------------------------------------------------------------------------------------------------------------
Supermarkets X
---------------------------------------------------------------------------------------------------------------------
Direct X
------
---------------------------------------------------------------------------------------------------------------------
</TABLE>
Branding Strategy * 9 distinct brands under Phoenix overlay
Product Diversity * 98 Mutual Funds
* Multiple Styles
* 11 Managed Account product offerings
* Separate Accounts
Geographic Focus * Distribution - U.S. Domestic
* Asset Classes - U.S. Domestic
Primary Marketing Focus * Managed Accounts
* Alternative Financial Products
<PAGE>
PROJECT GRISWOLD
AUM Breakdown at June 30, 2000
CLIENT BREAKDOWN: 100% = $61 B ASSET ALLOCATION: 100% = $61 B
[PIECHART] [PIECHART]
% B $ % B $
CBOs 3% $ 1.7 Fixed Income 33% $20.1
PHL General 15% $ 9.0 Money Market 1% $ 0.5
PHL Associated 1% $ 0.7 Balanced 17% $10.2
Variable 6% $ 3.7 Equity 49% $29.9
Open-ended Mutual Funds 22% $13.3
Aberdeen/(1)/ 1% $ 0.8
Managed Accounts 19% $11.5
Institutional Accounts 26% $15.6
Closed-End Funds 7% $ 4.5
GEOGRAPHIC ASSET BREAKDOWN: 100% = $61 B EQUITY STYLE: 100% = $30 B
[PIECHART] [PIECHART]
% B $ % B $
Int'l 1% $ 0.9 Blend 25% $ 7.6
DOMESTIC 99% $60.0 Growth 31% $ 9.2
Int'l 3% $ 0.9
Other 2% $ 0.3
Value 40% $11.9
Source: Company data
(1) Includes $0.5 million of Aberdeen Retail and $0.3 million of Aberdeen
Institutional
PXP exhibits broad client and product diversity.
The Company's equity products offer broad diversity.
<PAGE>
PROJECT GRISWOLD
AUM Growth by Product
TOTAL AUM
($ in billions)
[GRAPH]
PERCENT OF TOTAL AUM
<TABLE>
<CAPTION>
CAGR
12/31/96 12/31/97 12/31/98 12/31/99 6/30/00 12/96-6/30
-------- -------- -------- -------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Open-End Mutual Funds 33.6 % 28.0 % 26.9 % 28.0 % 28.9 % 13.4 %
Managed Accounts 0.7 12.0 13.7 16.1 18.9 33.6/(1)/
Closed-End Funds 8.9 7.2 6.6 7.1 7.5 12.8
Institutional Accounts 36.5 34.8 36.4 34.8 28.9 10.9
PHL 20.4 18.0 16.4 14.0 15.9 10.3
-------- -------- -------- -------- ------- ----------
100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 18.4 %
======== ======== ======== ======== ======= ==========
Memo: Structured Products
as % of Total: 0.0 % 0.5 % 2.0 % 2.8 % 249.5 %/(1)/
</TABLE>
Source: SEC Filings, Company Data
N.B. Institutional accounts include structured products.
/(1)/ CAGR calculations for Managed Accounts and Structured Products use 12/97
and 12/98 as the base year, respectively.
PXP operates in a number of highly attractive segments.
While each of PXP's businesses has experienced growth, the managed accounts have
been strongest and are expected by management to continue improving.
Acquisitions and divestitures have impacted growth rates.
<PAGE>
PROJECT GRISWOLD
AUM Growth by Asset Class
TOTAL AUM
($ in billions)
[GRAPH]
PERCENT OF TOTAL AUM
<TABLE>
<CAPTION>
CAGR
12/31/96 12/31/97 12/31/98 12/31/99 6/30/00 12/96-6/30
-------- -------- -------- -------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Fixed Income 24.1 % 39.6 % 38.7 % 32.0 % 33.1 % 29.7 %
Equity 31.9 34.3 35.7 46.5 49.2 34.1
Balanced 42.3 25.3 24.9 20.4 16.8 (9.1)
Money Market 1.8 0.8 0.7 1.0 0.9 3.1
-------- -------- -------- -------- ------- ----------
100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 18.4 %
======== ======== ======== ======== ======= ==========
</TABLE>
Source: SEC Filings; 6/30 data from Company
Over time, the change in asset mix reflects the competitive performance of PXP's
equity products.
<PAGE>
PROJECT GRISWOLD
Mutual Fund Product Summary
*43% of mutual fund assets under management are 4- or 5- star rated funds.
<TABLE>
<CAPTION>
AUM At % of Products Per Style Ratings Net Flows
---------------------- ----------------- ----------------------
04/30/00 Total Total Rated 5 Stars 4 Stars YTD 2000 1999
-------- --------- ---------------------- ------- ------- ----------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Equity
Value $ 1,534 8.4% 1 1 0 0 ($102) ($233)
Growth 7,822 42.7 29 16 7 6 (34) (645)
Blend 916 5.0 6 3 0 1 (71) (304)
International 1,031 5.6 12 8 0 3 (89) (152)
Other 943 5.1 12 6 0 2 (69) (161)
-------- --------- ---------- --------- ------- ------- --------- ----------
Subtotal 12,246 66.8 60 34 7 12 (366) (1,496)
Fixed Income
Taxable Fixed Income 1,004 5.5 26 13 2 0 (92) (258)
Municipal 164 0.9 5 2 0 0 (11) (30)
-------- --------- ---------- --------- ------- ------- --------- ----------
Subtotal 1,169 6.4 31 15 2 0 (103) (287)
Money Market 413 2.3 2 0 0 0 (18) 115
Closed End Funds 4,496 24.5 5 5 0 0 NM NM
-------- --------- ---------- --------- ------- ------- --------- ----------
Total Mutual Funds $18,323 100.0% 98 54 9 12 ($488) ($1,668)
======== ========= ========== ========= ======= ======= ========= ==========
<CAPTION>
Morningstar Rating Per Investment Style - By AUM
------------------------------------------------------------------------------
5 4 3 2 1 Unrated
---------- ---------- ---------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Equity
Value -- -- $1,534 -- -- --
Growth 1,822 4,750 -- 604 -- 647
Blend -- 325 301 187 -- 102
International -- 260 647 14 103 8
Other -- 190 705 30 18 --
---------- ---------- ---------- ---------- -------- ----------
Subtotal 1,822 5,526 3,187 835 120 756
Fixed Income
Taxable Fixed Income 44 -- 469 474 18 --
Municipal -- -- -- 164 -- --
---------- ---------- ---------- ---------- -------- ----------
Subtotal 44 -- 469 638 18 --
Money Market -- -- -- -- -- 413
Closed End Funds -- -- 1,475 3,021 -- --
---------- ---------- ---------- ---------- -------- ----------
Total Mutual Funds $1,866 $5,526 $5,131 $4,493 $138 $1,169
========== ========== ========== ========== ======== ==========
% of Total Rated AUM 10.9% 32.2% 29.9% 26.2% 0.8%
MUTUAL FUND SUMMARY BY FAMILY
<CAPTION>
AUM At % of Products Per Family Ratings Net Flows
---------------------- ----------------- ----------------------
04/30/00 Total Total Rated 5 Stars 4 Stars YTD 2000 1999
-------- --------- ---------------------- ------- ------- ----------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PIC $ 9,148 49.9% 45 23 3 5 $ 95 ($884)
Duff & Phelps 369 2.0 9 3 0 0 (82) (28)
Seneca 469 2.6 7 6 3 1 (475) (54)
Engemann 2,522 13.8 12 11 3 6 160 94
Zweig 1,321 7.2 20 6 0 0 (186) (796)
-------- --------- ---------- --------- ------- ------- --------- ----------
Total Open End Funds 13,828 75.5 93 49 9 12 (488) (1,668)
Closed End Funds 4,496 24.5 5 5 0 0 -- --
-------- --------- ---------- --------- ------- ------- --------- ----------
Total Mutual Funds $18,323 100.0% 98 54 9 12 ($488) ($1,668)
======== ========= ========== ========= ======= ======= ========= ==========
<CAPTION>
Morningstar Rating Per Family - By AUM
------------------------------------------------------------------------------
5 4 3 2 1 Unrated
---------- ---------- ---------- ---------- -------- ----------
<C> <C> <C> <C> <C> <C>
PIC $ 784 $3,892 $3,184 $ 515 $103 $ 670
Duff & Phelps -- -- -- 135 234
Seneca 106 107 -- 238 18 --
Engemann 976 1,527 -- -- 18 --
Zweig -- -- 472 584 -- 265
---------- ---------- ---------- ---------- -------- ----------
Total Open End Funds 1,866 5,526 3,656 1,472 138 1,169
Closed End Funds -- -- 1,475 3,021 -- --
---------- ---------- ---------- ---------- -------- ----------
Total Mutual Funds $1,866 $5,526 $5,131 $4,493 $138 $1,169
========== ========== ========== ========== ======== ==========
</TABLE>
Source: Financial Research Corporation as of 4/30/00. May not tie to Company
data.
<PAGE>
PROJECT GRISWOLD
Comparative Performance - 15 Largest Mutual Funds
Top 15 mutual funds represent 61% of total mutual fund assets.
<TABLE>
<CAPTION>
YTD
Assets % of Return Annualized Return (as of 4/30/00)
-----------------------------------
Top Fifteen Mutual Funds 04/30/00 Total Morningstar Objective 04/30/00 1 Year 3 Year 5 Year
------------------------ ---------- --------- --------------------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Phoenix Gdwn Growth $ 3,306 18.0% Growth (0.87)% 26.47% 26.56% 11.70%
Phoenix Gdwn Bal 1,534 8.4 Balanced (0.13) 8.25 14.03 13.87
Phoenix Eng FocsGr 786 4.3 Growth 0.90 35.50 34.31 27.27
Phoenix Gdwn StrThm 779 4.2 Growth 12.17 52.64 44.10 ---
Phoenix Gdwn I&G 705 3.8 Balanced 0.42 3.82 10.35 11.98
Phoenix Eng AggGr 651 3.6 Agg Growth 1.98 67.31 45.86 34.50
Phoenix Eng NftyFty 551 3.0 Growth 3.71 29.02 27.83 25.84
Phoenix Oakh G&I 495 2.7 Growth&Inc 1.06 12.94 --- ---
Phoenix Zwg MngdAst 472 2.6 MultiGlobl (0.02) 3.91 11.28 5.49
Phoenix Gdwn Hi Yld 424 2.3 Corp:HY (2.23) 2.47 3.98 8.44
Phoenix Zwg Stratgy 347 1.9 Growth (1.52) (1.68) 5.29 4.26
Phoenix Eng Sm&MdCp 326 1.8 Growth (0.74) 87.36 41.47 12.23
Phoenix SmEng Cap 325 1.8 Small Comp (2.39) 85.73 38.36 ---
Phoenix Oakh StrAll 301 1.6 Asset Allocation (0.06) 8.51 15.51 13.76
Phoenix Snca EqOpty 238 1.3 Growth (2.51) 28.54 29.27 20.14
--------- -----
Total Fifteen Mutual Funds $ 11,240 61.3
Other Open-End Funds 2,588 14.1
Closed-End Funds 4,496 24.5
--------- -----
Total Mutual Funds $ 18,323 100.0%
<CAPTION>
Net Flows
------------------------------- Morningstar
Top Fifteen Mutual Funds YTD 4/30 1999 1998 Rating/(1)/
------------------------ ---------- ------- -------- ------------
<S> <C> <C> <C> <C>
Phoenix Gdwn Growth ($113.0) ($339.7) ($345.6) 4
Phoenix Gdwn Bal (102.3) (233.4) (278.8) 3
Phoenix Eng FocsGr (6.2) (9.6) (80.1) 4
Phoenix Gdwn StrThm 508.5 20.0 (41.6) 5
Phoenix Gdwn I&G (76.5) (181.7) 5.3 3
Phoenix Eng AggGr 67.0 17.2 (29.2) 5
Phoenix Eng NftyFty (0.2) 26.7 (1.2) 4
Phoenix Oakh G&I 22.8 197.8 165.4 NR
Phoenix Zwg MngdAst (52.5) (97.1) (26.1) 3
Phoenix Gdwn Hi Yld (44.9) (95.8) (26.7) 3
Phoenix Zwg Stratgy (102.9) (453.1) (275.6) 2
Phoenix Eng Sm&MdCp 94.4 35.8 36.7 5
Phoenix SmEng Cap (24.9) (67.3) (95.4) 4
Phoenix Oakh StrAll (17.7) (41.7) (45.6) 3
Phoenix Snca EqOpty (6.6) (20.2) (25.0) 2
------- -------- --------
Top Fifteen Mutual Funds 144.9 (1,242.1) (1,063.5)
======= ======== ========
</TABLE>
Source: Financial Research Corporation as of 4/30/00. May not tie to Company
data.
(1) Rating for Class A shares
<PAGE>
PROJECT GRISWOLD
Mutual Fund Performance
BY MORNINGSTAR RATED FUNDS
[BAR GRAPH]
* Phoenix Investment Partners . Industry
BY MORNINGSTAR RATED ASSETS
[BAR GRAPH]
* Phoenix Investment Partners . Industry
Source: Financial Research Corporation
* PXP management expects to achieve 4- or 5-star ratings on several funds that
will soon be attaining the minimum performance record for consideration under
the Morningstar rating system
. Phoenix Oakhurst Growth & Income ($523 MM in AUM at July 13, 2000)
. Phoenix Hollister Value Equity ($72 MM in AUM at July 13, 2000)
. Phoenix Hollister Small Blend Fund ($109 in AUM at July 13, 2000)
Source: Company Data
<PAGE>
PROJECT GRISWOLD
Selected Institutional Account Product Summary
<TABLE>
<CAPTION>
(Dollars in millions) Performance Data as of 6/30/2000
AUM/(1)/ Quarter YTD 1 Year 3 Year 5 Year
----------- ---------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
PIC Multi-Sector Fixed Income Composite $ 408 1.3% 3.5% 5.8% 5.0% 7.2%
Median Performance 1.5 3.8 4.6 6.0 6.4
Small Cap Value Composite 110 (1.7) 20.8 61.9 29.0 NA
Median Performance 0.9 6.4 3.3 5.9 NA
Large Cap Value Composite 104 (5.9) 1.2 5.4 15.2 19.4
Median Performance (1.4) (2.6) (9.4) 8.3 15.5
Quantitative Value Composite 466 (2.2) 1.0 8.4 23.2 26.1
Median Performance (1.4) (2.6) (9.4) 8.3 15.5
D&P Chicago Quality Value Equity Management $ 278 (3.5)% NA (1.1)% 12.9% 20.6%
Median Performance (2.2) NA (6.6) 8.8 16.2
Balanced Composite Performance 1,067 (1.4) NA 1.1 9.8 14.0
Median Performance (0.6) NA 4.9 12.0 14.4
Core Fixed Income 981 1.7 NA 4.2 5.7 6.0
Median Performance 1.6 NA 4.3 5.9 6.3
Intermediate Fixed Income NA 1.9 3.2 4.4 5.5 5.7
Median Performance 1.7 3.3 4.4 5.7 6.0
Enhanced Cash NA 1.6 3.0 5.6 5.5 5.8
Median Performance 1.6 3.1 5.8 5.5 5.6
Engemann Small Cap Growth Composite $ 244 4.8% NA 84.8% 36.9% 38.1%
Median Performance 11.7 NA 59.5 27.2 25.0
Seneca Growth Equity $ 831 2.7% 1.1% 26.1% 27.8% 26.6%
Earnings Driven Growth 704 1.0 24.5 76.5 40.9 33.2
Median Performance (3.6) 4.4 27.2 30.3 28.4
Small Capital Growth Equity 20 6.0 26.4 92.2 37.3 NA
Median Performance (4.5) 11.7 59.5 27.2 25.0
Core Fixed Income 267 2.0 3.6 4.6 6.8 7.9
Investment Grade Only VDFI 513 1.8 4.1 4.7 6.1 6.7
Median Performance 1.5 3.8 4.5 6.1 6.4
Enhanced Core - Avg. Inv. Grade VDFI 484 1.9 3.1 4.5 7.0 8.6
Median Performance 1.5 3.8 4.6 6.0 6.4
Benchmarks Lehman Brothers Investment Grade 1.7% 3.2% 4.4% 5.5% 5.7%
S&P 500 (2.9) (0.4) 7.4 19.7 23.8
S&P Midcap (3.3) 9.0 17.0 20.3 21.2
Russell 1000 Value (4.7) (4.2) (8.9) 10.9 17.8
Russell 2000 (3.8) 3.0 14.3 7.7 10.6
Russell 2000 Growth (7.4) 1.2 28.4 16.3 15.8
</TABLE>
Source: Company reports
(1) Duff & Phelps AUM as of 6/30; Seneca as of 3/31; PIC and Engemann as of
12/31/99.
Note: Total institutional AUM were $20.2 billion and $15.6 billion at 12/31/99
and 6/30/00 respectively. Data for other products not available.
<PAGE>
PROJECT GRISWOLD
Managed Account Product Summary
* PXP is a leading participant and the only multi-manager in the managed
account business
. Offers 11 products through four investment partners, with one product
under development
<TABLE>
<CAPTION>
---------------- ---------------- ---------------- --------------
SENECA HOLLISTER ENGEMANN DUFF & PHELPS
---------------- ---------------- ---------------- --------------
<S> <C> <C> <C>
Large Cap Growth Large Cap Value Large Cap Growth Large Cap Core
Mid Cap Growth Small Cap Value Small-Mid Cap Growth Balanced
Tax Sensitive Growth New Economy Value Balanced
Balanced (pending)
</TABLE>
* Marketing strategy emphasizes importance of portfolio construction
approach to building relationships with HNW brokers/clients
. Use multiple products to construct portfolio solutions
. Performance "OK" - not a "hot dot" approach
* Growth strategy
. Leverage Engemann reputation to introduce other brands ("bridging")
. Expand wholesaler salesforce
. Introduce additional products with 3 year track records
<PAGE>
PROJECT GRISWOLD
Analysis of AUM Growth
(Dollars in millions)
NET CASH FLOWS(a)
<PAGE>
PROJECT GRISWOLD
[BAR CHART]
PHL General & Associated Institutional Managed Accounts
Mutual Funds CBOs Total Net Flows
AUM ROLLFORWARD
<PAGE>
PROJECT GRISWOLD
<TABLE>
<CAPTION>
1996 1997 1998 1999 1H 00 2000P
-------- -------- ------- ------ -------- -------
<S> <C> <C> <C> <C> <C> <C>
Beginning Balance $ 35,046 $ 33,649 $ 46,403 $ 53,491 $ 64,602 $ 64,602
Net Flows (3,307) (3,075) 234 368 (1,292) (2,754)/(b)/
Performance 1,246 3,703 6,494 7,130 791 4,952
----------- ---------- --------- ---------- --------- -----------
Organic Growth (2,061) 628 6,728 7,498 (501) 2,198
Acq. / Divestitures/ Other 664 12,126 360 3, 613 (3,268) ---
----------- ---------- --------- ---------- ---------- -----------
Ending Balance $ 33,649 $ 46,403 $ 53,491 $ 64,602 $ 60,833 $ 66,800
=========== ========== ========= ========== ========== ===========
Organic Growth / BOP AUM (5.9)% 1.9% 14.5% 14.0% (0.8)% 3.4%
</TABLE>
Source: Company data
(a) Excludes charges attributable to performance, acquisitions and divestitures.
(b) Includes $(283) million of net flows in closed-end funds.
<PAGE>
PROJECT GRISWOLD
Distribution Channels - Mutual Funds and Managed Accounts
(dollars in millions)
* Phoenix Equity and Planning Corporation acts as national distributor and
transfer agent for each investment partner
------------------------------------
1999 Domestic Mutual Fund Sales
-------------------------------------
Bank 1.0%
Insurance 9.9%
Regional Wirehouse 15.3%
Wirehouse 31.6%
Financial Planner 42.2%
-------------------------------------
1999 Domestic Managed Account Sales
-------------------------------------
Financial Planner 9.8%
Wirehouse 87.2%
Regional Wirehouse 3.0%
Source: Company Data.
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
Top 10 Domestic Fund Sales by Distributor
-------------------------------------------------------------------------------------------------------
Institution 1999 Sales 1998 Sales % 1999 Sales
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 $ 174 $ 122 14.4%
2 89 77 7.4
3 39 0 3.2
4 39 41 3.2
5 37 44 3.0
6 35 39 2.9
7 34 62 2.8
8 29 44 2.4
9 28 70 2.3
10 19 0 1.5
----------- ---------- -----
Top 10 Total 523 498 43.3
Other 683 543 56.7
----------- ---------- ------
Total $ 1,206 $ 1,041 100.0%
=========== ========== ======
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
Top 10 Managed Account Sales by Distributor
-------------------------------------------------------------------------------------------------------
Institution 1999 Sales 1998 Sales % 1999 Sales
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 $ 1,226 $ 746 61.2%
2 366 79 18.3
3 148 57 7.4
4 52 20 2.6
5 28 13 1.4
6 21 15 1.1
7 12 11 0.6
8 11 4 0.6
9 10 4 0.5
10 10 7 0.5
---------- --------- --------
Top 10 Total 1,885 955 94.1
Other 118 26 5.9
---------- --------- --------
Total $ 2,003 $ 982 100.0%
========== ========= =========
</TABLE>
<PAGE>
PROJECT GRISWOLD
Historical Results of Operations
<TABLE>
<CAPTION>
($ in millions except per share data) Twelve Months Ended December 31, 6 Months Ended June 30, CAGR
------------------------------------- ------------------------ -------
------- ------- ------- -------- -------- --------- -------- -------
6/30/00 1996 to
1996 1997 1998 1999 1999 2000 LTM LTM
------- ------- ------- ------- ------- --------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
REVENUES
Investment Management Fees $ 118.2 $ 138.5 $ 193.1 $ 249.0 $ 118.1 $ 143.1 $ 274.0 27.2%
Mutual Funds - Ancillary Fees 22.0 22.5 25.7 33.2 15.5 18.6 36.3 15.3
Other Income and Fees 12.3 3.6 2.7 4.5 2.4 3.3 5.3 (21.3)
------- ------- ------- ------- ------- ------- -------
Total Revenues 152.5 164.6 221.5 286.6 136.0 165.0 315.7 23.1
------- ------- ------- ------- ------- ------- -------
EXPENSES
Employment Expenses 58.8 72.7 90.4 114.0 55.8 63.7 121.9 23.2
Other Operating Expenses 36.5 40.3 55.0 67.7 31.2 37.4 73.9 22.3
------- ------- ------- ------- ------- ------- -------
EBITDA 57.2 51.6 76.2 104.9 49.0 64.0 119.9 23.6
D&A of leasehold improvements 2.2 3.0 3.7 3.9 1.8 2.0 4.1 19.0
Amortization of deferred
commissions 6.1 3.0 1.4 1.6 1.0 0.4 1.0 (40.8)
Amortization of G/W & intangibles 9.6 14.0 22.1 30.3 14.3 15.9 31.9 40.8
------- ------- ------- ------- ------- ------- -------
Operating Income 39.3 31.7 49.1 69.1 31.8 45.7 83.0 23.8
Equity in Earnings of Uncons.
Affiliates/(1)/ 5.3 6.4 3.5 0.9 0.5 0.1 0.6
Interest (Expense)/ Income 0.4 (3.3) (12.6) (15.8) (7.4) (8.7) (17.1)
Income to Minority Interest --- (0.7) (2.2) (3.7) (1.6) (2.8) (4.9)
------- ------- ------- ------- ------- ------- -------
Pre-Tax Income from Cont. Operations 45.0 34.1 37.7 50.5 23.2 34.3 61.5 9.3
Other Non-Operating Items (0.1) (0.0) 1.0 1.5 0.7 0.8 1.6
Non-Recurring Items /(2)/ --- 6.2 16.2 (5.9) --- 13.4 7.5
------- ------- ------- ------- ------- ------- -------
Pre-Tax Income 44.9 40.2 55.0 46.1 23.9 48.5 70.6 13.8
Income Tax Expense 18.2 16.1 20.3 19.3 10.5 22.5 31.4
------- ------- ------- ------- ------- ------- -------
Net Income $ 26.7 $ 24.1 $ 34.6 $ 26.7 $ 13.4 $ 26.0 $ 39.3 11.6%
======= ======= ======= ======= ======= ======= =======
Basic Net Income Per Share $ 0.50 $ 0.44 $ 0.76 $ 0.61 $ 0.31 $ 0.59 $ 0.89 18.0%
Diluted Net Income Per Share 0.50 0.44 0.68 0.55 0.28 0.51 0.80 14.2%
Memo: Adjusted EBITDA /(3]/ $ 57.2 $ 50.9 $ 74.0 $ 101.2 $ 47.4 $ 61.2 $ 115.0 22.1%
------------------------------------------------------------------------------------------------------------------------------------
Key Ratios
Revenues from PHL / Total Rev's 9.5% 8.3% 7.4% 6.3% 6.4% 5.9% 6.1%
Management Fees/ Average AUM:
As reported 0.34 0.31 0.39 0.42 0.42 0.45 0.44
Excluding PHL General Account 0.37 0.33 0.43 0.46 0.46 0.48 0.47
Adjusted EBITDA Margin 37.5 30.9 33.4 35.3 34.8 37.1 36.4
Note: Average AUM /(4)/ $34,348 $45,003 $49,426 $59,134 $56,555 $64,087 $62,900 18.9%
</TABLE>
(1) Includes gains and losses on equity investments in PXP limited partnership
investment (e.g., Inverness/Pheonix Capital, Windy City CBO Partners, and
Greystone Partners).
(2) Includes gains on sale of $6.9 million and $16.6 million in 1997 and 1998,
respectively. Includes restructuring charges (due to outsourcing of
accounting services) of $0.7 million and $0.4 million in 1997 and 1998,
respectively. One-time mutual fund reimbursement of $5.9 million in 1999 was
offset by $8.9 million gain on sale and $4.5 million reimbursement insurance
income in 2000.
(3) Adjusted to exclude Seneca minority interest.
(4) AUM calculated based upon period-end average for 1996;
thereafter, Company data used.
Source: SEC Filings, Company data.
<PAGE>
PROJECT GRISWOLD
Common Size Income Statement
<TABLE>
<CAPTION>
Twelve Months Ended December 31, 6 Months Ended June 30,
----------------------------------------- -----------------------------
1996 1997 1998 1999 1999 2000 6/30/00
LTM
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES
Investment Management Fees 77.5% 84.1% 87.2% 86.9% 86.9% 86.7% 86.8%
Mutual Funds - Ancillary Fees 14.4 13.7 11.6 11.6 11.4 11.3 11.5
Other Income and Fees 8.1 2.2 1.2 1.6 1.8 2.0 1.7
-------- -------- -------- -------- -------- ------- -------
Total Revenues 100.0 100.0 100.0 100.0 100.0 100.0 100.0
-------- -------- -------- -------- -------- ------- -------
EXPENSES
Employment Expenses 38.6 44.2 40.8 39.8 41.0 38.6 38.6
Other Operating Expenses 23.9 24.5 24.8 23.6 23.0 22.6 23.4
-------- -------- -------- -------- -------- ------- -------
EBITDA 37.5 31.3 34.4 36.6 36.0 38.8 38.0
D&A of leasehold improvements 1.5 1.8 1.7 1.4 1.4 1.2 1.3
Amortization of deferred commissions 4.0 1.8 0.6 0.6 0.7 0.2 0.3
Amortization of goodwill 6.3 8.5 10.0 10.6 10.5 9.6 10.1
-------- -------- -------- -------- -------- ------- -------
Operating Income 25.8 19.3 22.1 24.1 23.4 27.7 26.3
Equity in Uncons. Affiliate Earnings/(1)/ 3.5 3.9 1.6 0.3 0.3 0.1 0.2
Net Interest Expense 0.3 (2.0) (5.7) (5.5) (5.5) (5.3) (5.4)
Income to Minority Interest --- (0.4) (1.0) (1.3) (1.2) (1.7) (1.5)
-------- -------- -------- -------- -------- ------- -------
Pre-Tax Income from Cont. Operations 29.5 20.7 17.0 17.6 17.1 20.8 19.5
Other Non-Operating Items (0.1) (0.0) 0.5 0.5 0.5 0.5 0.5
Non-Recurring Items/(2)/ --- 3.8 7.3 (2.1) --- 8.1 2.4
-------- -------- -------- -------- -------- ------- -------
Pre-Tax Income 29.4 24.5 24.8 16.1 17.6 29.4 22.4
Income Tax Expense 11.9 9.8 9.2 6.7 7.7 13.7 9.9
-------- -------- -------- -------- -------- ------- -------
Net Income 17.5% 14.7% 15.6% 9.3% 9.9% 15.7% 12.4%
======== ======== ======== ======== ======== ======= =======
Memo: Adjusted EBITDA/(3)/ 37.5% 30.9% 33.4% 35.3% 34.8% 37.1% 36.4%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Includes gains and losses on equity investments in PXP limited partnership
investments (e.g., Inverness/Phoenix Capital, Windy City CBO Partners, and
Greystone Partners).
(2) Includes gains on sale of $6.9 million and $16.6 million in 1997 and 1998,
respectively. Includes restructuring charges (due to outsourcing of
accounting services) of $0.7 million and $0.4 million in 1997 and 1998,
respectively. One-time mutual fund reimbursement of $5.9 million in 1999 was
offset by $8.9 million gain on sale and $4.5 million reimbursement insurance
income in 2000.
(3) Adjusted to exclude Seneca minority interest.
<PAGE>
PROJECT GRISWOLD
Projected Statement of Operations
<TABLE>
<CAPTION>
---------- ------------------- --------- -------- --------- ----------
($ in millions except per share data) 1999 6 Months 2000 2000 2001 2002 1999-02E
Actual Actual Plan Plan Plan Plan CAGR
--------- ------- -------- --------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES
Investment Management Fees $ 249.0 $ 143.1 $143.5 $ 292.4 $ 312.4 $ 347.5 11.8%
Mutual Funds - Ancillary Fees 33.2 18.6 17.3 35.2 35.9 39.2 5.7
Other Income and Fees 4.5 3.3 2.3 3.6 5.1 5.5 7.0
------- ------- ------- ------- ------- -------
Total Revenues 286.6 165.0 163.1 331.2 353.4 392.2 11.0
------- ------- ------- ------- ------- -------
EXPENSES
Employment Expenses 114.0 63.7 62.5 124.2 134.8 147.6 9.0
Other Operating Expenses 67.7 37.4 36.2 71.7 75.3 79.3 5.4
------- ------- ------- ------- ------- -------
EBITDA 104.9 64.0 64.4 135.4 143.4 165.2 16.4
D&A of Leasehold improvements 3.9 2.0 2.2 4.6 4.2 4.4 3.9
Amortization of deferred commissions 1.6 0.4 0.5 1.0 0.3 - NM
Amortization of Goodwill 30.3 15.9 16.0 32.7 34.3 34.3 4.2
------- ------- ------- ------- ------- -------
Operating Income 69.1 45.7 45.7 97.1 104.6 126.6 22.4
Equity in Earnings of Unconsol.
Affiliates/(1)/ 0.9 0.1 - - - - NM
Net Interest Expense (15.8) (8.7) (10.0) (20.0) (20.1) (18.0) 4.4
Income to Minority Interest (3.7) (2.8) (3.1) (6.3) (7.2) (8.4) 31.2
------- ------- ------- ------- ------- -------
Pre-tax Income from Continuing Operations 50.5 34.3 32.6 70.9 77.2 100.2 25.7
Non-Recurring Items (5.9) 13.4 - - - -
Other Non-Operating Items 1.5 0.8 0.7 1.4 1.4 1.4 (2.0)
------- ------- ------- ------- ------- -------
Pre-Tax Income 46.1 48.5 33.3 72.3 78.7 101.7 30.2
Income Tax Expense 19.3 22.5 14.3 31.8 34.6 44.5 32.0
------- ------- ------- ------- ------- -------
Net Income $ 26.7 $ 26.0 $ 19.0 $ 40.5 $ 44.0 $ 57.1 28.8
======= ======= ======= ======= ======= =======
Basic Net Income Per Share $ 0.61 $ 0.59 $ 0.43 $ 0.92 $ 1.01 $ 1.30 28.8
Diluted Net Income Per Share 0.55 0.51 0.38 0.80 0.87 1.11 26.7
Memo: Adjusted EBITDA/(2)/ $ 101.2 $ 61.2 $ 61.3 $129.1 $ 136.2 $ 156.9 15.7%
------------------------------------------------------------------------------------------------------------------------------------
Key Ratios
Revenues from PHL/Total Rev's 6.2% 5.9% 5.9% 6.0% 6.1% 6.0%
Management Fees/Average AUM:
As reported 0.42 0.46 0.45 0.45 0.45 0.45
Excluding PHL General Account 0.46 0.50 NA 0.48 0.48 0.48
Adjusted EBITDA Margin 35.3 37.1 37.6 39.0 38.5 40.0
Note: Average AUM/(3)/ $59,134 $62,717 $63,895 $ 65,700 $69,981 $ 77,307 9.3%
</TABLE>
(1) Includes gains and losses on equity investments in PXP limited partnership
investments (e.g., Inverness/Phoenix Capital, Windy City CBO Partners, and
Greystone Partners).
(2) Excludes Seneca minority interest.
(3) Projected data based on period end average.
Source: Management 2000 Plan
<PAGE>
PROJECT GRISWOLD
Comparison of Selected Earnings Forecasts
<TABLE>
<CAPTION>
-------------------------------------------------------------
Long-Term
2000 2001 2002 Growth 2005/(1)/
-------- -------- -------- ---------- -----------
<S> <C> <C> <C> <C> <C>
"Street" Estimates
IBES Median/(2)/ $ 0.86 $ 1.01 na 10.0% $ 1.47
Putnam, Lovell & Thornton/(3)/ 0.78 0.95 na 21.8 /(4)/ 2.09
Barrington Research/(5)/ 0.85 0.98 na 15.0 1.71
Management 2000 Financial Plan
As Reported $ 0.80 $ 0.87 $ 1.11 14.5% /(6)/ $ 1.67
Adjusted/(7)/ 0.79 0.85 1.09 14.8 /(6)/ 1.65
Morgan Stanley Estimates $ 0.78 $ 0.83 na 14.0 /(8)/ $ 1.40
</TABLE>
__________________________
(1) Based on long-term growth rate.
(2) Estimates as of 7/24/00.
(3) Estimates based upon report of 2/10/00.
(4) Based on implied 2000E-2001E growth.
(5) Estimates based upon bulletin of 7/25/00.
(6) Assumes long-term growth rate of Adjusted EBITDA equal to 10.5%, the
2000-2002 growth rate. Fixed expenses held constant.
(7) Adjusted to reflect sale of Duff & Phelps Cleveland, assumed to contribute
approximately $2.0 million per annum to operating income.
(8) Estimated by SSB based on conversations with Morgan Stanley.
<PAGE>
PROJECT GRISWOLD
Historical Statement of Conditon
<TABLE>
<CAPTION>
($ in Millions) CAGR
--------------------------------------------------------------------------------------
12/31/96 % of
12/31/96 12/31/97 12/31/98 12/31/99 6/30/00 to 6/30/00 Total
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 22.5 $ 21.9 $ 29.3 $ 42.2 $ 43.2 20.5% 6.4
Marketable securities, at market 4.1 12.0 16.3 7.9 13.5 40.9 2.0
Accounts receivable 25.7 31.5 35.0 45.7 51.6 22.1 7.7
Prepaid expenses and other CA 4.3 2.7 3.0 3.5 3.2 (7.9) 0.5
--------- --------- --------- --------- --------- -----
Total current assets 56.5 68.1 83.5 99.3 111.5 21.4 16.6
Deferred commissions 17.7 4.0 2.8 1.2 0.8 (58.4)% 0.1%
Furniture, equipment and leaseholds 8.4 10.1 8.6 12.5 12.3 11.5 1.8
Intangible assets, net 55.1 159.7 146.4 202.9 191.5 /(1)/ 42.8 28.5
Goodwill 171.7 308.5 300.3 353.7 340.6 21.6 50.6
Long-term investments and other assets 56.3 54.6 22.1 12.2 16.0 (30.2) 2.4
--------- --------- --------- --------- --------- -----
Total Assets $ 365.7 $ 604.9 $ 563.7 $ 681.7 $ 672.6 19.0% 100.0%
========= ========= ========= ========= ========= =====
LIABILITIES
Current liabilities
Accounts payable and other accrued liabs. $ 1.0 $ 4.3 $ 39.7 $ 46.0 $ 48.0 203.7% 7.1%
Payables to related parties 16.2 24.6 3.0 4.7 3.1 (37.9) 0.5
Broker-dealer payable 8.5 9.2 9.6 13.2 12.5 11.6 1.9
Current portion of long-term debt 2.5 8.1 1.0 1.0 1.1 (21.7) 0.2
--------- --------- --------- --------- --------- -----
Total current liabilities 28.2 46.1 53.2 64.9 64.6 26.7 9.6
Deferred taxes, net 33.9 66.0 53.4 45.7 43.7 7.6% 6.5%
Long-term debt, net of current portion --- 2.7 1.7 0.8 0.2 /(1)/ NM 0.0
Convertible subordinated debentures --- --- 76.4 76.4 76.2 NM 11.3
Credit facilities 14.0 185.0 140.0 235.0 210.0 116.8 31.2
Lease obligations and other LT liabs. 7.9 6.6 4.8 3.8 4.5 (14.8) 0.7
--------- --------- --------- --------- --------- -----
Total Liabilities 83.9 306.4 329.6 426.4 399.2 56.2 59.4
Minority Interest --- 1.0 2.5 4.3 1.1 NM 0.2
Convertible Preferred Stock 78.5 78.8 --- --- --- NM 0.0
Common Stockholders' Equity 203.3 218.7 231.6 251.0 272.3 8.7 40.5
--------- --------- --------- --------- --------- -----
Total Liabilities and Equity $ 365.7 $ 604.9 $ 563.7 $ 681.7 $ 672.6 19.0% 100.0%
========= ========= ========= ========= ========= =====
Memo: Tangible Equity, Converted Basis: $ 55.0 $ (170.6) $ (138.7) $ (229.2) $ (183.5)
</TABLE>
(1) Excludes $50 million payable to Engemann.
Sources: SEC form 10K dated 12/31/99, press release dated 8/30/00 relating to 2Q
2000, and the Company.
<PAGE>
PROJECT GRISWOLD
PXP Acquisition History
<TABLE>
<CAPTION>
Duff & Phelps
Corp. (1) GMG.Seneca Roger Engemann Zweig Group
Announcement Date June 13, 1995 February 27, 1997 June 9, 1997 December 16, 1998
Effective Date November 1, 1995 July 17, 1997 September 3, 1997 March 1, 1999
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Transaction Values (in millions):
Enterprise Value -- $ 54 $ 180/(2)/ $ 135
% Purchased 100% 75% 100% 100%
Earn-out:
Amount -- $ 4/(2)/ $ 66/(3)/ $ 29
Term (year) -- 2/(4)/ 3-5 3
Basis NM Account Retention Management fee Management fee
revenue targets revenue targets
Enterprise Value with PV of Earn-out/(5)/ -- $ 57 $ 213 $ 157
--------------------------------------------------------------------------------------------------------------------------------
Valuation Multiples/(6)/
AUM -- 1.4% 3.5% 3.0%
Revenues -- 3.2x 4.3x 3.4x
EBITDA -- 9.9 9.8 7.6
Valuation Multiples Adjusted for Earn-out/(5)/
AUM -- 1.5% 4.1% 3.5%
Revenues -- 3.3x 5.0x 3.9x
EBITDA -- 10.5 11.6 8.9
--------------------------------------------------------------------------------------------------------------------------------
AUM at close of acquisition ($b) $14.8 $ 4.2 $ 6.3 $ 2.8
% Open-End Fund 0.9% 0.0 15.4% 39.6%
% Closed-End Fund 20.6 0.0 0.0 51.2
% Separate Acct. 78.5 100.0 84.6 9.2
Equity 10.3% 43.0% 98.8% 57.1%
Fixed Income 48.7 57.0 0.0 29.0
Balanced 41.0 0.0 1.2 13.9
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: Company data and SEC Filings
(1) Reverse merger in which Duff & Phelps shareholders retained 40% of Newco.
(2) Accrues interest at 6.125% per annum.
(3) First payable on September 3rd, 2000 for $50 million; may be deferred for up
to 2 years at 15% interest, less any performance loss.
(4) Payment occurred January 1, 1999.
(5) Discounted earn-out payments at 15% per year.
(6) Based on payment at closing and most recent fiscal year prior to
announcement.
<PAGE>
PROJECT GRISWOLD
PXP Ownership Summary - 6/30/00
<TABLE>
<CAPTION>
(Shares in thousands)
(For the quarter ended June 30, 2000 Basic Diluted/(1)/ Fully Converted
----------------------------- ---------------------------- -----------------------
Percent Percent Percent
Owner Shares Ownership Shares Ownership Shares Ownership
<S> <C> <C> <C> <C> <C> <C>
Institutional Holders/(2)/
Wanger Asset Management, L.P. 3,857 8.7 % 3,857 6.9 % 3,857 6.2 %
Dimensional FD Advisors, Inc. 2,234 5.0 2,234 4.0 2,234 3.6
Tweedy, Browne Company, L.L.C. 2,135 4.8 2,135 3.8 2,135 3.4
I. G. Investment Mgmt, Ltd. 1,000 2.3 1,000 1.8 1,000 1.6
Royce & Associates, Inc. 924 2.1 924 1.7 924 1.5
Keeley Asset Management 541 1.2 541 1.0 541 0.9
Rothschild Asset Mgmt, Inc. 368 0.8 368 0.7 368 0.6
Vanguard Group 354 0.8 354 0.6 354 0.6
State Str Bk & Trust Co Boston 304 0.7 304 0.5 304 0.5
College Retire Equities 277 0.6 277 0.5 277 0.4
Mellon Private Asset Mgmt 265 0.6 265 0.5 265 0.4
Barclays Bank Plc 255 0.6 255 0.5 255 0.4
Scudder Kemper Invts, Inc. 250 0.6 250 0.4 250 0 4
General Motors Invt Mgmt Corp. 140 0.3 140 0.3 140 0.2
Northern Trust Company 138 0.3 138 0.2 138 0.2
Lyon Str Asset Mgmt Co 130 0.3 130 0.2 130 0.2
Fuller & Thaler Asset Mgmt Inc. 99 0.2 99 0.2 99 0.2
Taunus Corporation 96 0.2 96 0.2 96 0.2
Charles Schwab Investment Mgmt 83 0.2 83 0.1 83 0.1
California State Teach Retire 80 0.2 80 0.1 80 0.1
Other Institutional Shareholders 794 1.8 5,940/(3)/ 10.7 5,940/(3)/ 9.6
----------------------------------------------------------------------------------------------------------------------------------
Total Institutional Shareholders 14,321 32.3 19,466 35.0 % 19,466 31.3 %
Retail and Other Owners 1,863 4.2 1,863 3.3 1,863 3.0
Insiders /(4)/ 1,797 4.0 3,599/(5)/ 6.5 10,059/(5)/ 16.2
----------------------------------------------------------------------------------------------------------------------------------
Sub-Total 17,981 40.5 24,929 44.8 31,388 50.5
Phoenix Home Life 26,400 59.5 30,754 55.2 30,754 49.5
==================================================================================================================================
Total 44,381 100.0% 55,683 100.0% 62,142 100.0 %
</TABLE>
(1) Assumes a stock price of $10.81 and uses treasury method.
(2) Source: CDA/Spectrum as of July 24, 2000.
(3) Includes $41.4 million of convertible subordinated debentures not held by
Phoenix Home Life, which are convertible into 5.1 million shares at an
effective exercise price of $8.04.
(4) Source: Proxy statement dated May 11, 2000.
(5) Based on 8.3 million stock options held by management with an average
exercise price of $7.75 and debenture options with an average exercise price
of $31.12.
<PAGE>
PROJECT GRISWOLD
Price Volume Graph
[LINE GRAPH]
___________________
(a) May 15, 1996: Company announced plans to exit research, investment banking
and financial advisory business to re-focus on the retail and institutional
lines of asset management
(b) February 27, 1997: Announced purchase of Seneca
(c) June 9, 1997: Announced purchase of Roger Engemann and Associates
(d) September 6, 1998: Sale of Beutel Goodman
(e) December 16, 1998: Announced purchase of Zweig
(f) Unicredito Italiano Group announces intention to purchase Pioneer Group
Price 7/24/00: $10.81
Equity Value $ 608
Public Float 231
Price as a multiple of:
Pre-Tax Inc. 9.2x
Op. Cash Flow 7.7
Earnings:
LTM 14.5x
2000E (a) 14.1
2001E (a) 13.0
Div. Yield 3.0%
Firm value multiples (b):
AUM: 1.4%
Revenues 2.7x
EBITDA 7.2x
N.B. Share count based on treasury stock method.
(a) Source: Management
(b) Revenue and EBITDA adjusted for minority interest. Net debt adjusted for
Pasadena contingent payment.
<PAGE>
PROJECT GRISWOLD
3 COMPARISON WITH PEERS
<PAGE>
PROJECT GRISWOLD
Selected Comparable Company Analysis: AUM
(Dollars in Millions)
<TABLE>
<CAPTION>
Assets Under Management FYE As % of AUM:
----------------------------------------------------- --------------------
Client Type Asset Type 3 Yr. CAGR Total Adv.
-------------------- --------------------------------
AUM Retail Inst'l Equity FI Dom. Int'l AUM Rev. Rev. EBT
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Phoenix Investment Partners (1) $60,832 45.4% 54.6% 56.7% 43.3% 99.0% 1.0% 24.3% 0.50% 0.43% 0.11%
------------------------------------------------------------------------------------------------------------------------------------
Affiliated Managers Group, Inc. 91,600 9.0 91.0 65.0 35.0 73.0 27.0 62.7 0.52 0.52 0.09
AMVESCAP PLC 391,600 61.0 39.0 66.0 34.0 61.0 39.0 55.8 0.49 0.49 0.11
BlackRock Inc. 172,573 39.0 61.0 13.2 86.8 98.0 2.0 25.8 0.23 0.22 0.07
Eaton Vance Corporation 44,300 63.0 37.0 48.0 52.0 100.0 ---- 33.2 0.89 0.46 0.56
Federated Investors, Inc. 125,363 83.0 17.0 18.7 81.3 97.0 3.0 18.6 0.49 0.27 0.17
Franklin Resources, Inc. 233,400 73.0 27.0 68.6 31.4 30.0 70.0 12.9 0.99 0.59 0.30
Gabelli Asset Management Inc. 22,997 54.0 46.0 91.3 8.7 100.0 ---- 32.1 0.85 0.69 0.37
John Nuveen 59,965 65.4 34.6 25.1 74.9 100.0 ---- 21.7 0.58 0.51 0.28
Neuberger Berman Inc. 55,470 31.4 68.6 79.0 21.0 100.0 ---- 7.0 1.04 0.67 0.42
Stilwell Financial 324,900 75.0 25.0 95.0 5.0 75.0 25.0 72.3 0.47 0.39 0.21
T. Rowe Price Associates, Inc. 185,200 63.7 36.3 78.2 21.8 76.9 23.1 21.9 0.60 0.46 0.22
Waddell & Reed Financial Inc. 41,500 78.5 21.5 86.3 13.7 100.0 ---- 25.1 0.97 0.49 0.42
------------------------------------------------------------------------------------------------------------------------------------
Mean /(1)/ 58.0% 42.0% 61.2% 38.8% 84.2% 15.8% 32.4% 0.68% 0.48% 0.27%
Median /(1)/ 63.3 36.7 67.3 32.7 97.5 2.5 25.4 0.59 0.49 0.25
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
N.B. Financial data excludes all non-recurring and extraordinary items.
(1) PXP has been excluded from the mean and median calculations.
<PAGE>
PROJECT GRISWOLD
Selected Comparable Company Analysis:
Profitability Statistics
(Dollars in Millions)
<TABLE>
<CAPTION>
Last Twelve Month Performance:
-----------------------------------------------------------
Total Advisory Net Op. Cash
Rev. Rev. EBITDA Inc. Flow(1)
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------
Pheonix Investment Parners (2) $ 303.6 $ 262.0 $ 115.0 $ 41.8 $ 78.7
---------------------------------------------------------------------------------------------------------
Affiliated Managers Group, Inc. $ 480.8 $ 480.8 $ 105.7 $ 45.7 $ 73.2
AMVESCAP PLC (3) 1,929.4 1,929.4 755.9 189.2 466.0
BlackRock Inc. 401.2 381.1 137.0 66.4 84.1
Eaton Vance Corporation 396.2 203.5 242.2 153.6 236.0
Federated Investors, Inc. 608.5 341.0 251.0 134.9 204.1
Franklin Resources, Inc. 2,318.9 1,387.9 752.2 537.8 723.3
Gabelli Asset Management Inc. 194.3 159.7 75.0 50.4 51.2
John Nuveen 350.4 305.2 166.0 100.0 117.8
Neuberger Berman Inc. (4) 576.9 372.7 242.4 137.4 148.3
Stilwell Financial 1,524.1 1,251.6 710.2 381.5 425.7
T. Rowe Price Associates, Inc. 1,106.9 844.9 484.8 261.0 295.5
Waddell & Reed Financial Inc. 400.9 205.1 192.8 107.7 113.4
----------------------
Mean /(2)/
Median /(2)/
----------------------
<CAPTION>
LTM Profitability Statistics
-----------------------------------------
Comp. Margin (%): FYE-3Yr . CAGR
Adv./ Exp./ ------------------------- ----------------------
Total Total Net Net
Rev. Rev. EBITDA EBT Inc. Rev. Income
<S> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
Pheonix Investment Parners 86.3% 38.6% 37.9% 21.8% 13.8% 23.4% 4.1%
-----------------------------------------------------------------------------------------------------
Affiliated Managers Group, Inc. 100.0% 44.0% 22.0% 16.8% 9.5% 105.0% nm
AMVESCAP PLC 100.0 ---- 39.2 22.3 9.8 63.3 39.5%
BlackRock Inc. 95.0 35.3 34.2 28.8 16.6 37.5 87.9
Eaton Vance Corporation 51.4 17.6 61.1 63.2 38.8 24.1 37.8
Federated Investors, Inc. 56.0 25.7 41.2 34.8 22.2 22.4 108.9
Franklin Resources, Inc. 59.8 22.3 32.4 30.5 23.2 14.2 14.3
Gabelli Asset Management Inc. 82.2 41.0 38.6 43.3 25.9 na na
John Nuveen 87.1 27.8 47.4 47.4 28.5 16.6 10.3
Neuberger Berman Inc. 64.6 41.3 42.0 40.1 23.8 (0.4) na
Stilwell Financial 82.1 25.0 46.6 44.1 25.0 35.7 38.4
T. Rowe Price Associates, Inc. 76.3 30.8 43.8 37.6 23.6 20.9 34.5
Waddell & Reed Financial Inc. 51.2 12.4 48.1 43.5 26.9 17.3 11.9
---------------------------------------------------------------------
75.5% 26.9% 41.4% 37.7% 22.8% 32.4% 42.6%
79.2 26.7 41.6 38.9 23.7 22.4 37.8
---------------------------------------------------------------------
</TABLE>
NB Financial data excludes all non-recurring and extraordinary items.
(1) Operating Cash Flow equals net income plus depreciation and amortization.
(2) PXP has been excluded from the mean and median calculations.
(3) Financial data is adjusted to reflect US GAAP.
(4) Revenue CAGR for Neuberger Berman is only available for 1 year.
<PAGE>
PROJECT GRISWOLD
Summary Operating Statistics
<TABLE>
<CAPTION>
Total Revenue as a % of Average AUM Advisory Revenue as a % of Average AUM
--------------------------------------- ------------------------------------------
1997 1998 1999 1997 1998 1999
-------- ---------- --------- -------- ----------- ----------
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Phoenix Investment Partners
Including PHL 0.37% 0.45% 0.48% 0.31% 0.39% 0.42%
Excluding PHL General Account 0.40 0.50 0.53 0.33 0.43 0.46
------------------------------------------------------------------------------------------------------------------------------
Affiliated Managers Group, Inc. 0.21 0.39 0.52 0.21 0.38 0.52
AMVESCAP PLC 0.46 0.50 0.49 0.46 0.49 0.49
BlackRock Inc. 0.21 0.27 0.23 0.18 0.25 0.22
Eaton Vance Corporation 0.89 0.96 0.89 0.51 0.59 0.46
Federated Investors, Inc. 0.44 0.47 0.49 0.37 0.45 0.27
Franklin Resources, Inc. 1.09 1.16 0.99 0.62 0.63 0.59
Gabelli Asset Management Inc. 0.89 0.88 0.85 0.73 0.77 0.69
John Nuveen 0.54 0.56 0.58 0.45 0.49 0.51
Neuberger Berman Inc. 0.93 1.04 1.04 0.61 0.68 0.67
Stilwell Financial 0.68 0.59 0.47 0.54 0.48 0.39
T. Rowe Price Associates, Inc. 0.61 0.60 0.60 0.47 0.46 0.46
Waddell & Reed Financial Inc. 1.08 1.04 0.97 0.50 0.50 0.49
------------------------------------------------------------------------------------------------------------------------------
Mean/(1)/ 0.67 0.70 0.68 0.47 0.51 0.48
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Mean excludes PXP.
<PAGE>
PROJECT GRISWOLD
Summary Operating Statistics (continued)
<TABLE>
<CAPTION>
EBITDA Margin EBT Margin
------------------------------------- -------------------------------------
1997 1998 1999 1997 1998 1999
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------
Phoenix Investment Partners 30.9% 33.4% 35.3% 20.7% 17.0% 17.6%
-------------------------------------------------------------------------------------------------------------------
Affiliated Managers Group, Inc. 33.5 47.8 22.0 3.1 17.7 16.8
AMVESCAP PLC 39.8 33.1 39.2 24.8 21.4 22.3
BlackRock Inc. 35.9 28.7 34.2 22.2 22.1 28.8
Eaton Vance Corporation 60.0 46.4 61.1 32.8 22.3 63.2
Federated Investors, Inc. 35.4 43.9 41.2 20.3 27.9 34.8
Franklin Resources, Inc. 32.7 31.5 32,4 27.3 25.0 30.5
Gabelli Asset Management Inc. 36.6 40.4 38.6 33.6 35.9 43.3
John Nuveen 50.8 50.2 47.4 45.4 44.8 47.4
Neuberger Berman Inc. 44.4 46.2 42.0 44.4 44.7 40.1
Stilwell Financial 43.8 44.3 46.6 42.3 42.6 44.1
T. Rowe Price Associates, Inc. 57.5 57.4 43.8 31.0 31.7 37.6
Waddell & Reed Financial Inc. 51.6 51.7 48.1 45.5 45.8 43.5
-------------------------------------------------------------------------------------------------------------------
Mean/(1)/ 43.5 43.5 41.4 31.1 31.9 37.7
-------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Mean excludes PXP.
<PAGE>
PROJECT GRISWOLD
<TABLE>
<CAPTION>
EBT as a % of Average AUM Comp. Expense to Total Revenue
------------------------------------- -------------------------------------
1997 1998 1999 1997 1998 1999
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------
Phoenix Investment Partners 0.8% 0.8% 0.09% 44.2% 40.8% 39.8%
-------------------------------------------------------------------------------------------------------------------
Affiliated Managers Group, Inc. 0.01 0.07 0.09 43.1 36.4 44.0
AMVESCAP PLC 0.11 0.11 0.11 -- -- --
BlackRock Inc. 0.05 0.06 0.07 38.0 44.0 35.3
Eaton Vance Corporation 0.29 0.21 0.56 22.5 23.2 17.6
Federated Investors, Inc. 0.09 0.13 0.17 34.5 28.1 25.7
Franklin Resources, Inc. 0.30 0.29 0.30 20.0 21.6 22.3
Gabelli Asset Management Inc. 0.30 0.31 0.37 47.4 43.3 41.0
John Nuveen 0.25 0.25 0.28 28.7 28.9 27.8
Neuberger Berman Inc. 0.41 0.46 0.42 38.7 37.2 41.3
Stilwell Financial 0.29 0.25 0.21 24.3 25.0 25.0
T. Rowe Price Associates, Inc. 0.19 0.19 0.22 33.6 34.3 30.8
Waddell & Reed Financial Inc. 0.49 0.49 0.42 10.5 10.9 12.4
-------------------------------------------------------------------------------------------------------------------
Mean/(1)/ 0.23 0.24 0.27 28.5 27.8 26.9
-------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Mean excludes PXP.
<PAGE>
PROJECT GRISWOLD
Selected Comparable Company Analysis:
Market Statistics
(Dollars in Millions)
<TABLE>
<CAPTION>
Firm Value as a Multiple of:
----------------------------------------
Stock Price As % of 52-Wk Mkt. Firm as % of LTM LTM LTM
-----------------
7/24/00 High Low Cap. Value (1) AUM Rev. EBITDA EBIT
-----------------------------------------------------------------------------------------------------------------------------------
Phoenix Investment Partners (4) $10.81 90% 171% $ 602 $ 820 1.3% 2.7x 7.1x 10.5x
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Affiliated Managers Group, Inc. $44.75 88% 203% $ 993 $ 1,211 1.3% 2.5x 11.5x 15.5x
AMVESCAP PLC (5) 86.81 95 241 11,263 11,822 3.0 6.1 15.6 24.7
BlackRock Inc. 34.06 94 273 2,175 2,086 1.2 5.2 15.2 17.5
Eaton Vance Corporation 49.81 97 182 1,760 1,735 3.9 4.4 7.2 7.2
Federated Investors, Inc. 25.19 93 246 2,013 2,237 1.8 3.7 8.9 9.5
Franklin Resources, Inc. 33.81 84 137 8,235 7,539 3.2 3.3 10.0 11.5
Gabelli Asset Management Inc. 23.00 87 162 681 625 2.7 3.2 8.3 8.4
John Nuveen 43.19 95 129 1,351 1,369 2.3 3.9 8.2 8.9
Neuberger Berman Inc. 48.00 98 203 2,361 2,437 4.4 4.2 10.1 10.5
Stilwell Financial 49.63 95 135 11,451 11,168 3.4 7.3 15.7 16.8
T. Rowe Price Associates, Inc. 45.25 94 175 5,465 5,110 2.8 4.6 10.5 11.3
Waddell & Reed Financial Inc. 33.94 95 252 1,413 1,324 3.2 3.3 6.9 7.1
-------------------------------------------------------------
Mean /(4)/ 2.8% 4.3x 10.7x 12.4x
Median /(4)/ 2.9 4.1 10.0 10.9
-------------------------------------------------------------
<CAPTION>
Market Cap. as a Multiple of: IBES
-------------------------------------------------------------------------
LTM LTM Op. Cash 12 Mos. Calendar: Growth
-----------------------
Pre-Tax Net.Inc. Flow (2) Fwd. EE (3) 00EE (3) 01EE (3) Rate
--------------------------------------------------------------------------------------------------------------------------
Phoenix Investment Partners (4) 9.1x 14.4x 7.6x 13.3x 14.0x 12.9x 10.0%
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Affiliated Managers Group, Inc. 12.3x 21.7x 13.6x 15.9x 18.0x 14.7x 22.5%
AMVESCAP PLC (5) 26.2 59.5 24.2 22.0 24.0 20.8 20.0
BlackRock Inc. 18.8 32.8 25.9 23.6 26.2 22.0 16.0
Eaton Vance Corporation 7.0 11.5 7.5 14.8 15.9 14.1 20.0
Federated Investors, Inc. 9.5 14.9 9.9 19.0 20.6 17.9 16.0
Franklin Resources, Inc. 11.6 15.3 11.4 13.6 14.5 13.0 15.0
Gabelli Asset Management Inc. 8.1 13.5 13.3 11.2 12.4 10.5 15.0
John Nuveen 8.1 13.5 11.5 12.9 13.5 12.4 10.0
Neuberger Berman Inc. 10.2 17.2 15.9 15.7 16.8 15.0 12.0
Stilwell Financial 17.0 30.0 26.9 16.8 18.9 15.6 17.0
T. Rowe Price Associates, Inc. 13.1 20.9 18.5 19.6 20.4 19.1 15.0
Waddell & Reed Financial Inc. 8.1 13.1 12.5 19.7 20.9 18.9 15.0
---------------------------------------------------------------------------------
12.5x 22.0x 15.9x 17.1x 18.5x 16.2x 16.1%
10.9 16.3 13.4 16.4 18.4 15.3 15.5
---------------------------------------------------------------------------------
</TABLE>
NB Financial data excludes all non-recurring and extraordinary items.
(1) Represents market capitalization plus long-term debt and minority interest
less cash and cash equivalents.
(2) Represents Net Income plus Depreciation and Amortization.
(3) Earnings estimates represent IBES median estimates.
(4) PXP has been excluded from the mean and median calculations. PXP's financial
information has been adjusted for Seneca minority interest, interest on
convertible debt and Engemann liability.
(5) Market data represents that of the American Depository Shares (which each
represent 5 ordinary shares). Financial data is adjusted to reflect US GAAP.
<PAGE>
PROJECT GRISWOLD
Price Performance
WEEKLY DATA: 11/15/95 TO 7/24/00
[LINE GRAPH APPEARS HERE]
____ PXP ____ All Asset Managers ____ SPX
RETURN MATRIX
<TABLE>
<CAPTION>
Since 11/15/95/(1)/ 3 Years/(1)/ 1 Year YTD 3 Month 1 Month Since 7/24
------------------- ------------ ------ ----- ------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
PXP 12.9% 10.6% 25.4% 41.8% 37.3% 11.6% 30.6%
All Asset Managers /(2)/ 22.3 12.7 40.2 46.3 21.5 8.9 4.1
S&P 500 21.2 16.0 8.6 0.6 (0.9) 0.6 0.6
</TABLE>
(1) Annualized returns
(2) All Asset Managers Index consists of AMG, AVZ, BLK, EV, FII, BEN, GBL, JNC,
NEU, TROW and WDR.
<PAGE>
PROJECT GRISWOLD
4 VALUATION CONSIDERATIONS
<PAGE>
PROJECT GRISWOLD
Analysis of Premium to Market
Offer Price Per Share $ 12.50
--------------------------------------------------------------------------------
Premium Analysis
Based on $12.50 per PXP Share Benchmark Premium
--------------------------------------------------------------------------------
LTM High $ 12.06 3.6 %
--------------------------------------------------------------------------------
Closing Price, 7/24 10.81 15.6
--------------------------------------------------------------------------------
One week prior to offer 11.25 11.1
Average during last week 11.04 13.2
--------------------------------------------------------------------------------
Four weeks prior to offer 9.69 29.0
Average during four weeks 10.86 15.1
--------------------------------------------------------------------------------
Three months prior to offer 7.94 57.5
Average during three months 9.49 31.7
--------------------------------------------------------------------------------
LTM Low 6.31 98.0
--------------------------------------------------------------------------------
<PAGE>
PROJECT GRISWOLD
Implied Valuation Summary
<TABLE>
<CAPTION>
(Dollars in Millions)
Valuation Methodology $ 12.50 $ 13.00 $ 14.00 $ 15.00 $ 16.00 $ 17.00
--------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 14.37 - $16.00
COMPARABLE COMPANIES ANALYSIS
GOING PRIVATE PREMIUMS (1992 to Present)
Financial Institutions $11.77 - $13.49
All Cash Transactions $12.09 - $13.74
GOING PRIVATE PREMIUMS (1999 to Present)
Financial Institutions Initial $14.17 - $ 15.72
Offer
All Cash Transactions $13.62 - $14.17
DISCOUNTED CASH FLOW ANALYSIS/(1)/
PRIVATE MARKET ANALYSIS
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Millions)
Valuation Methodology $ 18.00 $ 19.00 $ 20.00 $21.00 $ 22.00
-----------------------------------------
<S> <C> <C> <C> <C> <C>
COMPARABLE COMPANIES ANALYSIS
GOING PRIVATE PREMIUMS (1992 to Present)
Financial Institutions
All Cash Transactions
GOING PRIVATE PREMIUMS (1999 to Present)
Financial Institutions
All Cash Transactions
DISCOUNTED CASH FLOW ANALYSIS/(1)/ $16.52 - $22.13
PRIVATE MARKET ANALYSIS $19.10 - $21.32
</TABLE>
<TABLE>
<CAPTION>
Reference Data
--------------------------
Transaction Metrics Reported Adjusted/(2)/ $ 12.50 $13.00 $ 14.00 $ 15.00 $16.00 $17.00
---------- -------------- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Diluted Market Cap. 602.1 N/A $ 706.9 $738.0 $ 800.1 $ 862.3 $924.4 $ $986.6
Implied Firm Value (3) 820.2 N/A 925.1 956.1 1,018.3 1,080.4 1,142.6 1,204.7
Premium to Market $10.81 N/A 15.6% 20.2% 29.5 % 38.7% 48.0% 57.2%
as of July 24
1 week prior 11.25 N/A 11.1 15.6 24.4 33.3 42.2 51.1
4 weeks prior 9.69 N/A 29.0 34.2 44.5 54.8 65.2 75.5
LTM High (7/10/00) 12.06 N/A 3.6 7.8 16.1 24.4 32.6 40.9
Valuation Metrics
Firm Value Multiples
As % of AUM $60,832 1.5% 1.6% 1.75% 1.8% 1.9% 2.0%
LTM Revenues 315.7 $303.6 3.0x 3.1x 3.4x 3.6x 3.8x 4.0x
LTM EBITDA 119.9 115.0 8.0 8.3 8.9 9.4 9.9 10.5
Equity Value
Multiples
LTM Pre-tax $ 61.5 $ 66.1 10.7x 11.2x 12.1x 13.0x 14.0 x 14.9 x
Earnings
LTM Net Income 39.3 41.8 16.9 17.6 19.1 20.6 22.1 23.6
LTM Cash Flow (4) 76.2 78.7 9.0 9.4 10.2 11.0 11.7 12.5
2000E Earnings (1) 40.5 43.1 16.4 17.1 18.6 20.0 21.5 22.9
2001E Earnings (1) 44.0 46.6 15.2 5.8 17.2 18.5 19.8 21.2
<CAPTION>
Transaction Metrics $ 18.00 $ 19.00 $ 20.00 $ 21.00 $ 22.00
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Diluted Market Cap. 1,048.7 $ 1,110.9 $ 1,173.0 $ 1,235.1 $1,297.3
Implied Firm Value (3) 1,266.9 1,329.0 1,391.1 1,453.3 1,515.4
Premium to Market as of July 24 66.5% 75.7% 85.0% 94.2% 103.5%
1 week prior 60.0 68.9 77.8 86.7 95.6
4 weeks prior 85.8 96.1 106.5 116.8 127.1
LTM High (7/10/00) 49.2 57.7 65.8 74.1 82.4
Valuation Metrics 2.1% 2.2% 2.3% 2.4% 2.5%
Firm Value Multiples 4.2x 4.4x 4.6x 4.8X 5.0x
As % of AUM 11.0 11.6 12.1 12.6 13.2
LTM Revenues
LTM EBITDA 15.9x 16.8x 17.7x 18.7x 19.6x
Equity Value Multiples 25.1 26.6 28.0 29.5 31.0
LTM Pre-tax Earnings 13.3 14.1 14.9 15.7 16.5
LTM Net Income 24.4 25.8 27.2 28.7 30.1
LTM Cash Flow (4) 22.5 23.8 25.2 26.5 27.8
2000E Earnings (1)
2001E Earnings (1)
</TABLE>
--------------------------------------------------------------------------------
(1) Based on PXP 2000 Financial Plan.
(2) Adjusted for Seneca minority interest, interest on convertible debt and
Engemann liability.
(3) Adjusted for net debt.
(4) Net income plus depreciation and amortization.
<PAGE>
PROJECT GRISWOLD
Valuation Summary Implied Median Multiples
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
Reference Data (a) Implied Equity
(Dollars in millions) Reported Adjusted (b) Median Valuation (c) Valuation Range
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PUBLIC MARKET ANALYSIS - TRADING (d)
Firm Value / LTM Revenues $ 315.7 $ 303.6 3.9 % --- 4.3% $ 954.5 --- $1,078.0
Firm Value / LTM EBITDA 119.9 115.0 9.5 --- 10.5 878.2 --- 993.6
Market Value / LTM Cash Flow (e) 76.2 78.7 12.8 --- 14.1 1,004.9 --- 1,110.6
Market Value / LTM Pre-tax Earnings 61.5 66.1 10.4 --- 11.5 685.7 --- 757.9
Market Value / LTM Earnings 39.3 41.8 15.4 --- 17.1 645.9 --- 713.9
Market Value / 2000E Earnings (f) 40.5 43.1 17.5 --- 19.4 754.3 --- 833.7
Market Value / 2001E Earnings (f) 44.0 46.6 14.5 --- 16.1 678.2 --- 749.6
---------------------------------------------------------------------------------------------------------------------------------
Average Valuation Range $ 800.2 --- $ 891.0
Per Share $ 14.37 --- $ 16.00
---------------------------------------------------------------------------------------------------------------------------------
PRIVATE MARKET ANALYSIS - RECENT PRECEDENTS (g)
Firm Value / LTM Revenues $ 315.7 $ 303.6 4.8 % --- 5.3% $ 1,227.8 --- $1,380.0
Firm Value / LTM EBITDA 119.9 115.0 12.0 --- 13.3 1,161.3 --- 1,306.5
Market Value / LTM Pre-tax Earnings 61.5 66.1 14.8 --- 16.4 979.4 --- 1,082.5
Market Value / LTM Earnings 39.3 41.8 21.2 --- 23.4 886.1 --- 979.3
---------------------------------------------------------------------------------------------------------------------------------
Average Valuation Range (h) $ 1,063.6 --- $1,187.1
Per Share $ 19.10 --- $ 21.32
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
N.B. Assumes 55.7 million shares outstanding on a diluted basis.
(a) As of 6/30/00.
(b) Adjusted for Seneca minority interest, interest on convertible debt and
Engemann liability.
(c) Range is + / - 5 % of the median multiple.
(d) Based upon trading statistics for comparable companies. Historical
financial information for comparable companies are as of 3/31/00.
(e) Net Income plus depreciation and amortization.
(f) Based on PXP 2000 Financial Plan.
(g) Based upon selected transactions since 1997 involving a domestic asset
manager with purchase price greater than $300 million.
(h) Valuations include full change-of-control premium.
<PAGE>
PROJECT GRISWOLD
Going Private Transactions:
Implied Premiums Analysis Since 1992
<TABLE>
<CAPTION>
ACQUIRORS HOLDING 40% OR MORE AT ANNOUNCEMENT, 1992 - TODAY
-------------------------------------------------------------------------------------------------------------------------------
Premium Implied Valuation
---------------------------------------------------------------------------------------
Number of 25th 75th 25th 75th
Deals Percentile Median Percentile Percentile Median Percentile
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
One Week Prior
All Transactions 119 11.5% 20.4% 39.8% $ 12.54 $ 13.55 $ 15.73
Financial Institutions 29 15.5 21.4 38.9 12.99 13.66 15.63
All Cash 92 15.2 23.0 42.0 12.95 13.84 15.98
Four Weeks Prior
All Transactions 119 9.2% 23.2% 41.0% $ 10.57 $ 11.94 $ 13.66
Financial Institutions 29 9.9 23.2 42.0 10.65 11.94 13.76
All Cash 92 11.5 26.0 44.2 10.80 12.21 13.97
ACQUIRORS HOLDING 60% OR MORE AT ANNOUNCEMENT, 1992 - TODAY
------------------------------------------------------------------------------------------------------------------------------
Premium Implied Valuation
--------------------------------------------------------------------------------------
Number of 25th 75th 25th 75th
Deals Percentile Median Percentile Percentile Median Percentile
------------------------------------------------------------------------------------------------------------------------------
One Week Prior
All Transactions 82 11.5% 18.6% 38.0% $ 12.54 $ 13.34 $ 15.52
Financial Institutions 18 8.5 18.5 29.1 12.20 13.33 14.53
All Cash 63 12.8 21.3 38.6 12.69 13.65 15.59
Four Weeks Prior
All Transactions 82 6.4% 21.8% 41.8% $ 10.30 $ 11.80 $ 13.74
Financial Institutions 18 4.2 19.7 33.2 10.09 11.60 12.90
All Cash 63 9.2 23.7 43.3 10.57 11.98 13.88
----------------------------------------------------------------------
Financial Institutions One Week $ 13.49
Four Weeks 11.77
----------------------------------------------------------------------
----------------------------------------------------------------------
All Cash One Week 13.74
Four Weeks 12.09
----------------------------------------------------------------------
</TABLE>
N.B. Includes all non-withdrawn transactions with a value greater than $40
million involving a domestic minority target firm
<PAGE>
PROJECT GRISWOLD
Going Private Transactions:
Implied Premiums Analysis Since 1999
<TABLE>
<CAPTION>
ACQUIRORS HOLDING 40% OR MORE AT ANNOUNCEMENT, 1999 - TODAY
-------------------------------------------------------------------------------------------------------------------------------
Premium Implied Valuation
Number of 25th 75th 25th 75th
Deals Percentile Median Percentile Percentile Median Percentile
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
One Week Prior
All Transactions 32 10.4% 23.3% 42.9% $ 12.42 $ 13.87 $ 16.08
Financial Institutions 8 36.5 39.9 54.7 15.36 15.74 17.41
All Cash 27 17.1 30.7 45.1 13.18 14.70 16.32
Four Weeks Prior
All Transactions 32 15.6% 38.3% 52.4% $ 11.20 $ 13.40 $ 14.77
Financial Institutions 8 41.2 49.2 66.2 13.68 14.46 16.10
All Cash 27 25.6 41.2 53.9 12.17 13.68 14.91
ACQUIRORS HOLDING 60% OR MORE AT ANNOUNCEMENT, 1999 - TODAY
-------------------------------------------------------------------------------------------------------------------------------
Premium Implied Valuation
Number of 25th 75th 25th 75th
Deals Percentile Median Percentile Percentile Median Percentile
-------------------------------------------------------------------------------------------------------------------------------
One Week Prior
All Transactions 22 3.6% 20.9% 42.2% $ 11.66 $ 13.60 $ 16.00
Financial Institutions 5 29.5 39.5 40.3 14.57 15.70 15.78
All Cash 20 8.9 21.3 42.9 12.25 13.64 16.08
Four Weeks Prior
All Transactions 22 14.8% 38.7% 54.2% $ 11.12 $ 13.44 $ 14.94
Financial Institutions 5 35.1 43.3 64.8 13.08 13.88 15.97
All Cash 20 17.8 40.0 55.8 11.41 13.56 15.10
-------------------------------------------------------------------
Financial Institutions One Week $ 15.72
Four Weeks 14.17
-------------------------------------------------------------------
-------------------------------------------------------------------
All Cash One Week 14.17
Four Weeks 13.62
-------------------------------------------------------------------
</TABLE>
N.B. Includes all non-withdrawn transactions with a value greater than $40
million involving a domestic minority target firm
<PAGE>
PROJECT GRISWOLD
Discounted Cash Flow Analysis
<TABLE>
<CAPTION>
2000 2001 2002 2003 2004
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EBITDA (a) $ 129.1 $136.2 $156.9 $173.3 $ 191.5
Less: Taxes (b) (56.8) (59.9) (69.0) (76.3) (84.2)
--------- ------ ------ ------ --------
After-tax Cash Flows 72.3 76.3 87.8 97.0 107.2
Depreciation - CapEx 0.0 0.0 0.0 0.0 0.0
Change in Working Capital (c) (10.0) (4.4) (8.3) (8.3) (9.2)
Estimated Engemann Liability (d) (50.0) --- --- --- ---
Terminal value (e) --- --- --- --- 1,723.2
--------- ------ ------ ------ --------
Total cash flows $ 12.3 $ 71.9 $ 79.6 $ 88.8 $1,821.2
Present value of cash flows at June 30, 2000 (e) $ 1,238.7
Less: Net Debt (f) (168.1)
---------
------------------------------------------------------------------------------
Equity Value $ 1,070.6
Equity Value per Share (g) $ 19.23
------------------------------------------------------------------------------
Discount Assumed Terminal Multiple on EBITDA
---------------------------------------------------
Rate (h) 7.0 x 8.0 x 9.0 x 10.0 x
---------------------------------------------------
12.00 % $15.94 $18.00 $20.07 $ 22.13
13.00 15.26 17.24 19.23 21.21
14.00 14.61 16.52 18.42 20.33
------------------------------------
15.00 13.99 15.82 17.66 19.49
16.00 13.40 15.16 16.93 18.69
</TABLE>
N.B. Based on a weighted average cost of capital of 13.00%.
(a) 2000-02 from PXP 2000 Financial Plan; thereafter based on an EBITDA long
term growth rate of 10.5%.
(b) Assumes an effective tax rate of 44.0%, per PXP management.
(c) Assumed equal to one-twelfth the change in expense and one-fourth the
change in revenue.
(d) Payable at Engemann's option on September 3, 2000.
(e) Calculated using terminal multiple of 9.0x 2004 EBITDA and 13.00%
discount rate.
(f) Excludes convertible debentures which are assumed to have been converted
into shares of common stock.
(g) Based on 55.7 million diluted shares (option data as of 6/30/00), using
the treasury method.
(h) See Appendix: (i) Summary of Equity Betas and (ii) Weighted Average
Cost of Capital.
<PAGE>
PROJECT GRISWOLD
Selected Private Market Asset Management Transactions(a)
<TABLE>
<CAPTION>
In Millions
Acquiror Target
--------------------------------------------------------------------------------------------
Announce Product Info
Date Name Name AUM % Mut. Fund % Inst. % HNW Equity FI Money Mkt.
---------- ------------------- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
06/20/00 Alliance Capital Sanford C.
Management Bernstein & Co 85,500 - 62.8 37.2% 80.0% 19.0% 1.0%
06/20/00 Old Mutual Plc United Asset
Management 188,000 25.0 64.8 10.1 88.0 19.0 1.0
06/16/00 CDC Asset Mgmt. Nvest, L.P. 134,000 27.6 64.9 7.5 42.0 48.0 10.0
06/12/00 Liberty Financial Wanger Asset
Companies Mgmt., LP 9,133 91.6 8.4 - 91.7 - 8.3
05/15/00 Unicredito Italiano Pioneer Group 24,500 95.6 4.4 na 94.2 4.0 1.8
Group
01/13/00 Charles Schwab U.S. Trust Corp. 86,000 12.6 19.4 68.0 54.0 46.0 na
11/01/99 Allianz AG PIMCO Advisors LP 256,153 17.0 83.0 na 33.0 66.0 1.0
08/10/98 Northwestern Mutual Frank Russell
Life Company 42,000 - 100.0 na 67.0 23.0 10.0
11/05/97 PIMCO Advisors L.P. Oppenheimer Capital 61,393 13.0 87.0 na 82.0 13.0 5.0
<CAPTION>
Acquiror FV as a FV as a Multiple of: Price as a Multiple of:
---------------------- -------------------------
Announce Purchase Percent of LTM LTM LTM LTM
Date Name Price AUM Revenues EBITDA Pretax Inc. Net Inc.
---------- ------------------- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
06/20/00 Alliance Capital
Management 3,500.0 nd nd 10.5x nd nd
06/20/00 Old Mutual Plc 1,460.0 1.18 2.5x 7.1 13.0x 22.6x
06/16/00 CDC Asset Mgmt. 1,909.0 1.64 3.4 12.3 18.2 na
06/12/00 Liberty Financial
Companies 388.0 4.21 nd nd nd nd
05/15/00 Unicredito Italiano
Group 1,226.0 5.14 5.7 18.5 26.7 40.3
01/13/00 Charles Schwab 2,700.0 3.14 5.1 18.1 29.8 34.6
11/01/99 Allianz AG 3,220.1 1.85 5.0 15.6 20.5 22.0
08/10/98 Northwestern Mutual
Life 1,200.0 nd nd nd na nd
11/05/97 PIMCO Advisors L.P. 792.8 1.91 5.7 12.6 12.8 21.0
----------------------------------------------------------------------------
Mean 2.89% 4.5x 13.9x 17.8x 27.3x
Median 2.86 5.0 12.6 15.6 22.3
----------------------------------------------------------------------------
</TABLE>
N.B. "nd" indicates that transaction pricing was not publicly disclosed,
although actual pricing has been incorporated into the mean and median.
(a) Based upon selected transactions since 1997 involving a domestic asset
manager with purchase price greater than $300 million.
<PAGE>
PROJECT GRISWOLD
APPENDIX
<PAGE>
PROJECT GRISWOLD
Going Private Transactions Deal List
<TABLE>
<CAPTION>
Per Share % Change
--------------
Date Initial Final From Initial Deal
------------------- Value % %
Announced Completed Price Price Offer Acquiror Name Target Name ($M) Stock Cash
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
4/25/00 Pending $ 8.00 $ 8.00 - Investor Group MPW Industrial Services Group $ 122.4 - 100.0%
4/24/00 Pending 18.75 26.40 40.8% Investor Group Cherry Corp 144.5 - 100.0
3/27/00 6/27/00 44.00 50.50 14.8 Hartford Financial Services Hartford Life(ITT Hartford) 1,324.6 - 100.0
3/23/00 Pending 3.40 - - Security Capital Group Inc Homestead Village Inc 130.1 - 100.0
3/21/00 4/20/00 41.50 41.95 1.1 Citigroup Inc Travelers Property Casualty 2,449.3 - 100.0
3/17/00 Pending 71.00 - - BP Amoco PLC Vastar Resources Inc 1,335.5 - 100.0
2/22/00 Pending 62.01 62.01 - Global Crossing Ltd IXnet Inc(IPC Information) 876.9 100.0 -
2/14/00 Pending 71.50 71.50 Healtheon/WebMD Inc CareInsite Inc(Synetic Inc) 1,883.8 100.0 0.0
1/31/00 Pending 15.00 15.00 - Thermo Instrument Systems Inc Thermo Optek Corp 51.8 - 100.0
1/31/00 Pending 17.00 17.00 - Thermo Instrument Systems Inc ThermoQuest Corp 96.9 - 100.0
1/31/00 Pending 28.00 28.00 - Thermo Instrument Systems Inc Thermo BioAnalysis(Thermo) 167.9 - 100.0
1/19/00 4/19/00 10.50 12.50 19.0 Metropolitan Life Insurance Co Conning Corp 84.6 - 100.0
1/19/00 Pending 49.00 49.00 - Dexter Corp Life Technologies Inc(Dexter) 356.9 - 100.0
1/19/00 2/9/00 23.50 23.50 - Elyo(Suez Lyonnaise des Eaux) Trigen Energy Corp 159.2 - 100.0
1/11/00 Pending 21.00 21.00 - Investor Group Hayes Lemmerz International 165.2 - 100.0
12/21/99 12/21/99 - - - Guardian Industries Corp OIS Optical Imaging Systems 40.2 - 100.0
12/8/99 Pending - - - Heico Companies LLC Robertson-Ceco Corp 49.6 - 100.0
12/1/99 Pending 13.25 16.50 24.5 Boise Cascade Corp Boise Cascade Office Products 205.3 - 100.0
11/16/99 Pending 6.00 6.00 - Thermo Electron Corp Thermo TerraTech Inc(Thermo) 80.7 100.0 0.0
11/12/99 Pending 17.00 17.00 - Cordant Technologies Inc Howmet International Inc 261.4 - 100.0
11/5/99 11/5/99 36.50 36.50 - Discount Investment Corp(IDB) PEC Israel Economic Corp 205.8 - 100.0
9/20/99 Pending 22.00 22.00 - Elyo(Suez Lyonnaise des Eaux) Trigen Energy Corp 132.7 - 100.0
9/3/99 Pending 10.30 10.30 - Investor Group Digital Link Corp 50.7 - 100.0
7/29/99 Pending 8.75 8.75 - Cactus Acquisitions Inc Western Beef Inc 89.2 - 100.0
6/8/99 7/28/99 37.00 37.00 - Merck E(Merck AG) WWR Scientific Products Corp 581.1 - 100.0
5/7/99 7/30/99 35.62 35.62 - McDermott International Inc J Ray McDermott SA 514.5 - 100.0
4/12/99 6/30/99 8.00 10.00 25.0 Investor Group Meadowcraft Inc 53.2 - 100.0
4/1/99 8/15/99 2.00 2.90 45.0 Vivendi SA Aqua Alliance Inc 117.1 - 100.0
3/24/99 9/21/99 25.00 28.00 12.0 Warburg, Pincus Ventures Inc Knoll Inc(Warburg, Pincus) 490.8 - 100.0
3/21/99 7/1/99 9.00 9.75 8.3 Viacom Inc(Natl Amusements) Spelling Entertainment Group 191.6 - 100.0
2/8/99 2/8/99 17.00 17.00 - Cordant Technologies Inc Howmet International Inc 385.1 - 100.0
1/6/99 3/1/99 14.00 14.00 - Marriott International Inc ExecuStay Corp 64.8 - 100.0
12/3/98 4/8/99 9.75 11.00 12.8 Fairchild Corp Banner Aerospace Inc 82.4 100.0 -
12/2/98 4/23/99 20.00 24.50 22.5 Pinault-Printemps Redoute Brylane Inc 230.6 - 100.0
11/12/98 5/14/99 8.00 8.00 - UtiliCorp United Inc Aquila Gas Pipeline Corp 43.2 - 100.0
10/27/98 12/14/98 29.00 33.25 14.7 Allmerica Financial Corp Citizens Corp(Hanover Ins Co) 212.4 - 100.0
10/22/98 4/29/99 15.50 20.50 32.3 Bank of America National Trust BA Merchant Sves(Bank America) 339.4 - 100.0
<CAPTION>
Offer Premium Held at
-------------------------
Date 1 Week 4 Week Ann Percent
-------------------
Announced Completed Prior Prior Date Sought
====================================================================================
<S> <C> <C> <C> <C> <C>
4/25/00 Pending 58.0% 16.4% 52.4% -
4/24/00 Pending 109.1 70.3 51.1 48.9%
3/27/00 6/27/00 40.3 43.3 80.4 18.3
3/23/00 Pending 29.5 64.8 72.3 -
3/21/00 4/20/00 39.5 35.1 85.0 15.0
3/17/00 Pending 15.4 44.9 80.1 -
2/22/00 Pending 22.8 25.9 72.4 -
2/14/00 Pending (0.7) (3.4) 64.9 -
1/31/00 Pending (5.1) 41.2 90.0 -
1/31/00 Pending 47.0 61.9 85.4 -
1/31/00 Pending 55.6 53.4 70.1 -
1/19/00 4/19/00 38.9 52.1 56.6 -
1/19/00 Pending - - 70.0 -
1/19/00 2/9/00 42.4 31.9 49.6 -
1/11/00 Pending 23.5 38.8 72.0 -
12/21/99 12/21/99 - - 79.6 -
12/8/99 Pending - - 69.2 -
12/1/99 Pending 55.3 60.0 80.5 -
11/16/99 Pending (9.4) 11.6 53.7 -
11/12/99 Pending 18.8 38.1 84.6 -
11/5/99 11/5/99 1.0 2.8 69.3 -
9/20/99 Pending 20.5 18.1 49.6 -
9/3/99 Pending 23.0 32.9 42.4 -
7/29/99 Pending 42.9 38.6 71.4 -
6/8/99 7/28/99 30.7 46.5 49.9 50.1
5/7/99 7/30/99 13.1 19.2 63.0 37.0
4/12/99 6/30/99 63.3 77.8 73.0 27.0
4/1/99 8/15/99 19.0 101.7 77.8 22.2
3/24/99 9/21/99 51.9 46.4 58.2 -
3/21/99 7/1/99 43.1 54.5 80.9 19.1
2/8/99 2/8/99 11.5 13.3 62.0 -
1/6/99 3/1/99 7.2 9.8 42.8 55.0
12/3/98 4/8/99 41.9 40.8 69.2 -
12/2/98 4/23/99 88.5 44.1 49.0 49.2
11/12/98 5/14/99 17.4 68.4 81.6 18.4
10/27/98 12/14/98 17.2 20.9 81.8 18.2
10/22/98 4/29/99 56.2 42.0 65.4 -
</TABLE>
Source: Thompson Financial Securities Data
<PAGE>
PROJECT GRISWOLD
Going Private Transactions Deal List (continued)
<TABLE>
<CAPTION>
Per Share % Change
------------------------
Date Initial Final From Initial
-------------------
Announced Completed Price Price Offer Acquiror Name Target Name
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
10/16/98 2/12/99 $ 19.00 $ 19.00 - Affiliated Computer Services BRC Holdings Inc
10/5/98 3/1/99 13.10 13.10 - Apartment Investment & Mgmt Co Insignia Properties Trust
9/29/98 10/7/98 25.37 25.37 - Newmont Mining Corp Newmont Gold Co
9/23/98 2/25/99 10.46 11.44 9.4% Inland Steel Industries Inc Ryerson Tull Inc
9/23/98 12/17/98 5.75 6.38 11.0 Usinor SA J&L Specialty Steel Inc
9/8/98 12/15/98 25.50 30.00 17.6 Investor Group PEC Israel Economic Corp
8/24/98 11/19/98 20.77 20.77 - Liberty Media(Tele-Commun) Tele-Commun Intl(Tele-Commun)
8/19/98 8/19/98 24.00 24.00 - Tracinda Corp Metro-Goldwyn-Mayer Inc
7/7/98 12/23/98 37.00 39.13 5.7 Dexter Corp Life Technologies Inc(Dexter)
5/11/98 6/10/98 12.10 12.10 - Fairchild Corp Banner Aerospace Inc
4/30/98 11/2/98 20.50 28.00 36.6 Dow AgroSciences(Dow Chemical) Mycogen Corp(Dow AgroSciences)
3/31/98 3/26/99 7.00 7.00 - Thermedics(Thermo Electron) Thermo Voltek Corp
3/27/98 7/15/98 18.25 18.25 - ISP Holdings Inc Intl Specialty Prods
3/17/98 7/31/98 48.00 63.00 31.3 Investor Group BET Holdings Inc
3/16/98 11/5/98 17.00 12.00 (29.4) Trace International Holdings Foamex International Inc
3/10/98 3/25/98 13.63 13.63 - IP Forest Resources Co IP Timberlands Ltd
3/5/98 5/20/98 20.00 20.00 - Xerox Corp XLConnect Solutions Inc
2/6/98 3/18/98 12.00 12.00 - Kohlberg Kravis Roberts & Co PRIMEDIA Inc
1/29/98 1/29/98 27.60 27.60 - Flowers Industries Inc Keebler Foods Co
1/22/98 9/29/98 10.50 13.75 31.0 Buhrmann NV BT Office Products Intl Inc
1/20/98 4/16/98 17.50 17.50 - World Access Inc NACT Telecommunications(GST)
1/8/98 1/30/98 13.00 13.00 - Rayonier Inc Rayonier Timberlands LP
12/18/97 Pending 33.00 33.00 - Telephone and Data Systems Inc United States Cellular Corp
12/18/97 NA 8.00 8.00 - Telephone and Data Systems Inc Aerial Communications Inc
10/20/97 6/24/98 25.00 29.70 18.8 HSN Inc Ticketmaster Group Inc
8/29/97 12/29/97 19.50 22.50 - Rexel SA (Pinault-Printemps) Rexel Inc
7/9/97 12/23/97 24.00 22.05 - Investor Group Seaman Furniture Co
6/26/97 11/26/97 97.00 92.00 - Rhone-Poulenc SA (France Rhone-Poulenc Rorer Inc
6/20/97 3/30/98 15.00 16.50 - Waste Management Inc Wheelabrator Technologies Inc
6/13/97 3/26/98 52.75 - - Hilton Hotels Corp Bally's Grand Inc
6/2/97 7/15/97 40.00 40.00 - Anthem Inc Acordia Inc (Anthem Inc)
5/22/97 7/30/97 14.25 15.50 - Texas Industries Inc Chaparral Steel Co
5/14/97 11/18/97 32.00 33.94 - Enron Corp Enron Global Power & Pipelines
3/3/97 12/3/97 37.00 37.00 - American Financial Group Inc American Finl Enterprises Inc
2/25/97 8/5/98 60.00 - - Petrofina SA Fina Inc
1/28/97 5/21/97 7.25 8.00 10.3 Monsanto Co Calgene Inc (Monsanto Co)
1/21/97 7/9/97 38.50 33.50 (13.0) Mafco Holdings Mafco Consolidated Grp (Mafco)
1/13/97 9/4/97 36.00 39.50 9.7 Zurich Group Zurich Reinsurance Centre Holding
12/17/96 7/16/97 29.00 33.00 13.8 Allmerica Financial Corporation Allmerica Property & Casualty
11/27/96 3/27/97 14.25 14.25 - JW Childs Equity Partners LP Central Tractor Farm & Country
10/14/96 5/31/94 11.00 12.10 10.0 Valero Energy Corp Valero Natural Gas Partners LP
10/13/96 4/6/94 27.25 27.75 1.8 Medco Containment Services Inc Medical Marketing Group Inc
<CAPTION>
Deal Offer Premium Held at
---------------------
Date Value % % 1 Week 4 Week Ann Percent
-------------------
Announced Completed ($M) Stock Cash Prior Prior Date Sought
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
10/16/98 2/12/99 $ 131.9 - 100.0% 16.9% 15.2% 63.0% -
10/5/98 3/1/99 63.6 100.0% - 7.5 - 75.0 -
9/29/98 10/7/98 264.8 100.0 - 20.8 62.4 93.8 6.3%
9/23/98 2/25/99 61.2 100.0 - (11.6) (40.8) 86.4 -
9/23/98 12/17/98 115.0 - 100.0 112.5 37.8 53.5 46.5
9/8/98 12/15/98 102.7 - 100.0 28.0 23.7 81.4 18.6
8/24/98 11/19/98 379.1 100.0 0.0 (4.5) (9.9) 81.1 -
8/19/98 8/19/98 394.8 - 100.0 51.8 9.4 65.0 -
7/7/98 12/23/98 215.8 - 100.0 24.7 19.0 78.0 22.0
5/11/98 6/10/98 48.4 100.0 - 0.3 2.4 67.0 14.0
4/30/98 11/2/98 379.3 - 100.0 40.0 52.4 62.2 37.8
3/31/98 3/26/99 43.9 - 100.0 60.0 40.0 50.0 -
3/27/98 7/15/98 324.5 100.0 0.0 1.7 14.5 79.9 -
3/17/98 7/31/98 462.3 - 100.0 58.5 58.2 57.9 42.1
3/16/98 11/5/98 166.6 - 100.0 (14.7) (9.4) 43.3 -
3/10/98 3/25/98 99.5 - 100.0 - - 84.4 -
3/5/98 5/20/98 93.0 - 100.0 15.1 22.1 69.7 -
2/6/98 3/18/98 200.0 - 100.0 (5.9) - 71.7 -
1/29/98 1/29/98 309.1 - 100.0 - - 41.8 -
1/22/98 9/29/98 138.1 - 100.0 78.9 78.9 70.0 -
1/20/98 4/16/98 53.1 100.0 - 12.5 16.7 61.0 -
1/8/98 1/30/98 65.8 - 100.0 25.3 17.5 74.7 -
12/18/97 Pending 539.2 100.0 - 2.3 1.1 80.7 19.3
12/18/97 NA 107.6 100.0 0.0 325.8 288.2 82.1 17.9
10/20/97 6/24/98 340.8 50.0 50.0 8.1 31.6 44.6 55.4
8/29/97 12/29/97 250.8 - 100.0 3.3 5.4 50.6 49.4
7/9/97 12/23/97 31.6 - 100.0 21.5 21.5 66.9 33.1
6/26/97 11/26/97 4,000.6 - 100.0 16.5 22.7 31.4 34.3
6/20/97 3/30/98 774.7 - 100.0 16.5 18.8 34.0 33.0
6/13/97 3/26/98 42.6 - 100.0 29.8 31.1 86.2 6.9
6/2/97 7/15/97 172.7 - 100.0 11.5 26.0 66.8 33.2
5/22/97 7/30/97 65.9 - 100.0 15.2 18.8 60.0 18.7
5/14/97 11/18/97 403.9 100.0 - 7.6 13.3 41.6 49.4
3/3/97 12/3/97 83.6 100.0 - - 83.0 17.0
2/25/97 8/5/98 257.0 - 100.0 18.5 21.5 70.6 14.7
1/28/97 5/21/97 242.6 - 100.0 60.0 60.0 44.6 43.7
1/21/97 7/9/97 116.8 - 100.0 23.5 27.6 85.0 15.0
1/13/97 9/4/97 322.5 - 100.0 18.5 12.1 65.7 34.3
12/17/96 7/16/97 796.9 47.0 53.0 12.8 15.3 59.5 40.5
11/27/96 3/27/97 53.6 - 100.0 21.3 26.7 64.5 35.5
10/14/96 5/31/94 117.4 - 100.0 29.1 36.3 49.0 51.0
10/13/96 4/6/94 122.5 - 100.0 NA (5.9) 51.5 48.5
</TABLE>
Source: Thompson Financial Securities Data
<PAGE>
PROJECT GRISWOLD
Going Private Transactions Deal List (continued)
<TABLE>
<CAPTION>
Per Share % Change Deal
--------------
Date Initial Final From Initial Value
----------------------
Announced Completed Price Price Offer Acquiror Name Target Name ($M)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
10/10/96 11/27/96 $ 10.00 $ 10.00 -% Renco Group Inc WCI Steel Inc $ 56.5
9/9/96 9/23/96 - 11.05 - Highwoods Property Crocker Realty Trust Inc 73.7
8/8/96 9/17/96 41.00 41.00 - Chemed Corp Roto-Rooter Inc 88.3
7/31/96 11/13/96 8.00 8.00 - Monsanto Co Calgene Inc (Monsanto Co) 50.0
5/27/96 2/16/97 17.00 19.50 - Sandoz Ltd (Novartis) SyStemix Inc 76.2
5/10/96 12/11/96 23.52 23.52 34.0 PXRE Corp Transnational Re Corp 130.5
5/7/96 7/3/96 17.50 18.50 5.7 Orion Capital Corp Guaranty National Corp 85.1
4/8/96 8/16/96 55.00 55.00 - AirTouch Communications Cellular Communications Inc 1,606.5
3/29/96 4/26/96 50.00 50.00 - Equity Holdings Ltd Great American Mgmt & Invt Inc 55.6
1/26/96 5/31/96 25.80 25.80 - NationsBank Corp Charter Bancshares Inc 94.7
10/18/95 11/28/95 11.75 11.75 - Rhone-Poulenc Rover Inc Applied Immune Sciences Inc 84.6
9/26/95 12/21/95 14.00 15.25 8.9 SCOR SA SCOR SA Corp 55.4
8/25/95 1/2/96 70.00 70.00 - Berkshire Hathaway Inc GEICO Corp 2,347.0
7/14/95 12/11/95 18.00 20.00 11.1 COBE Laboratories (Gambro AB) REN Corp-USA 177.7
5/19/95 12/6/95 36.50 40.50 11.0 BICSA Bic Corp 212.6
4/7/95 10/3/95 127.50 129.90 1.9 McCaw Cellular Commun (AT&T) LIN Bdcstg 3,323.4
4/5/95 8/2/95 26.25 32.00 21.9 Club Mediterranee SA Club Med Inc 153.4
2/27/95 8/31/95 22.50 23.25 3.3 Conseco CCP Insurance Inc 273.7
2/27/95 6/22/95 22.00 20.63 - Conseco Bankers Life Holding Corp 458.5
2/7/95 7/12/95 14.00 16.35 16.8 WMX Technologies Inc Rust International Inc 50.5
1/31/95 2/1/95 - 69.54 - Sandoz AG Systemix Inc 80.0
1/18/95 8/9/95 26.00 29.00 11.5 Arcadian Crop Arcadian Partners LP 428.4
12/28/94 4/28/95 20.00 20.00 - Fleet Financial Group Inc Fleet Mortgage Group Inc 188.1
11/2/94 9/27/95 28.00 30.00 7.1 PacifiCorp Pacific Telecom 159.0
9/8/94 5/12/95 22.50 25.50 13.3 GTE Corp Contel Cellular Inc (Contel) 254.3
8/24/94 3/24/95 14.00 15.75 12.5 Dole Food Co Inc Castle & Cooke Homes Inc 81.5
6/6/94 12/29/94 18.38 18.38 - Ogden Corp Ogden Projects Inc 110.3
4/26/94 7/26/94 4.48 4.48 - Burlington Resources Inc Diamond ShamrocO Offshore 42.6
2/17/94 9/15/94 84.75 84.75 - EW Scripps (Edward Scripps Tr) Scripps Howard Broadcasting Co 115.9
1/7/94 2/23/94 7.65 7.65 - Holderbank Financiere Glarus Holnam Inc (Holdernam Inc) 51.7
10/22/93 10/22/93 14.70 14.70 - Manville Corp Riverwood International Corp 50.0
9/20/93 12/10/93 48.00 46.00 (4.2) Valley Fashions Corp West Point-Pepperell Inc 66.3
9/13/93 10/5/93 13.00 7.56 (41.8) Blockbuster Entertainment Corp Spelling Entertainment Inc 101.3
3/22/93 5/7/93 25.00 30.00 20.0 New Marvel Holdings Inc Marvel Entertainment Group Inc 300.0
11/13/92 5/7/93 17.88 18.75 4.9 Rust International Inc Brand Cas Inc 185.0
9/9/92 2/26/93 21.04 25.50 21.2 American Maize-Products Co American Fructose Corp 130.3
8/19/92 11/19/92 13.50 13.50 - Investor Group FoxMeyer Corp (Natl Intergroup) 44.6
8/17/92 12/31/92 14.72 25.78 75.1 Leucadia National Corp PHLCORP Inc 139.9
3/2/92 7/14/92 16.50 19.00 15.2 WR Grace & Co Grace Energy Corp 77.3
2/6/92 7/30/92 6.00 7.25 20.8 Charter Co (American Financial) Spelling Entertainment Inc 43.0
<CAPTION>
Offer Premium Held at
-----------------
Date % % 1 Week 4 Week Ann Percent
----------------------
Announced Completed Stock Cash Prior Prior Date Sought
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
10/10/96 11/27/96 - 100.0 29.0 77.8 84.5 15.5
9/9/96 9/23/96 - 100.0 0.5 0.5 77.1 22.9
8/8/96 9/17/96 - 100.0 20.6 19.7 54.9 45.1
7/31/96 11/13/96 - 100.0 80.3 39.1 49.0 4.7
5/27/96 2/16/97 - 100.0 69.5 59.2 73.0 27.0
5/10/96 12/11/96 100.0 - 16.5 9.9 22.3 77.7
5/7/96 7/3/96 - 100.0 15.6 22.3 49.5 30.7
4/8/96 8/16/96 - 100.0 7.8 6.3 40.0 60.0
3/29/96 4/26/96 - 100.0 4.2 3.6 87.9 12.1
1/26/96 5/31/96 100.0 - 15.9 22.8 42.0 58.0
10/18/95 11/28/95 - 100.0 51.6 38.2 46.0 54.0
9/26/95 12/21/95 - 100.0 35.6 38.6 80.0 20.0
8/25/95 1/2/96 - 100.0 23.1 25.3 52.4 47.6
7/14/95 12/11/95 - 100.0 20.3 26.0 53.0 47.0
5/19/95 12/6/95 - 100.0 12.5 28.6 78.0 22.0
4/7/95 10/3/95 - 100.0 6.7 1.3 52.0 48.0
4/5/95 8/2/95 - 100.0 39.9 44.6 67.0 33.0
2/27/95 8/31/95 - 100.0 30.1 23.2 48.1 51.9
2/27/95 6/22/95 - 100.0 21.4 6.0 63.2 36.8
2/7/95 7/12/95 - 100.0 39.1 39.1 96.3 3.7
1/31/95 2/1/95 - 100.0 315.2 303.1 60.0 11.6
1/18/95 8/9/95 - 50.0 21.5 26.1 45.0 55.0
12/28/94 4/28/95 - 100.0 18.5 18.5 81.0 19.0
11/2/94 9/27/95 - 100.0 23.7 23.7 86.6 13.4
9/8/94 5/12/95 - 100.0 37.8 36.0 90.0 10.0
8/24/94 3/24/95 - 100.0 41.6 55.6 81.7 18.3
6/6/94 12/29/94 100.0 - 17.6 20.5 84.2 15.8
4/26/94 7/26/94 - 100.0 (0.4) 5.4 87.1 12.9
2/17/94 9/15/94 100.0 - 13.0 13.0 86.0 14.0
1/7/94 2/23/94 - 100.0 15.5 7.4 95.0 5.0
10/22/93 10/22/93 - 100.0 12.0 8.9 80.5 1.0
9/20/93 12/10/93 - 100.0 (19.8) (19.8) 95.1 4.9
9/13/93 10/5/93 100.0 - (5.5) 0.8 50.3 20.9
3/22/93 5/7/93 - 100.0 42.9 58.9 59.6 20.7
11/13/92 5/7/93 30.0 70.0 13.6 4.9 55.8 44.2
9/9/92 2/26/93 100.0 - 23.6 29.1 42.7 57.3
8/19/92 11/19/92 - 100.0 18.7 1.9 66.5 10.4
8/17/92 12/31/92 100.0 - 15.2 28.9 63.1 36.9
3/2/92 7/14/92 - 100.0 21.6 7.8 83.4 16.6
2/6/92 7/30/92 - - 45.0 45.0 82.3 17.7
</TABLE>
Source: Thompson Financial Securities Data
<PAGE>
PROJECT GRISWOLD
Summary of Equity Betas
* As of July 24, 2000
* Betas are estimated using weekly data
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
2-Year Beta 5-Year Beta
Company Raw Adjusted/(1)/ Raw Adjusted/(1)/
---------------------- ----------- -------------- --------- ---------------
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------
Phoenix Investment Partners 0.52 0.70 0.52 0.70
---------------------------------------------------------------------------------------------
Affiliated Managers Group 1.56 1.39 1.37 1.27
AMVESCAP PLC 1.29 1.22 1.11 1.09
BlackRock/(2)/ 0.99 1.01 0.99 1.01
Eaton Vance 0.83 0.90 0.67 0.80
Federated Investors, Inc. 0.55 0.72 0.53 0.71
Franklin Resources 1.48 1.34 1.49 1.35
Gabelli Asset Management/(3)/ 0.20 0.49 0.20 0.49
John Nuveen 0.42 0.63 0.38 0.60
Neuberger Berman/(4)/ 0.50 0.68 0.50 0.68
T. Rowe Price Associates 1.70 1.49 1.77 1.54
Waddell & Reed Financial 0.85 0.92 0.90 0.95
---------------------------------------------------------------------------------------------
Median, excluding Phoenix 0.92 0.95
---------- -------------
Median, excluding Phoenix, BLK, GBL and NEU 1.07 1.02
---------------------------------------------------------------------------------------------
</TABLE>
____________________
Source: SSB Financial Strategies Group
(1) Adjusted to reflect a weighting with the market beta.
(2) BLK's IPO was on October 1, 1999.
(3) GBL's IPO was on February 1, 1999.
(4) NEU's IPO was on October 7, 1999.
Notwithstanding the computed data, SSB believes that the equity beta for the
asset management industry should be in the 1.1 - 1.2 range.
<PAGE>
PROJECT GRISWOLD
Weighted Average Cost of Capital
-----------------------------------------------------------------------------
Low High
------- --------
Cost of Equity
-----------------------------------------------------------------------------
U.S. Risk Free Rate (10 Year U.S. Treasury)/(1)/ 6.03% 6.03%
Equity Market Risk Premium 5.50% 7.50%
Equity Beta/(1)/ 1.15 1.15
-----------------------------------------------------------------------------
Adjusted Equity Market Risk Premium 6.33% 8.63%
Cost of Equity 12.36% 14.66%
Cost of Debt
-----------------------------------------------------------------------------
U.S. Risk Free Rate (10 Year U.S. Treasury)/(1)/ 6.03% 6.03%
Assumed Credit Spread 3.00% 3.00%
-----------------------------------------------------------------------------
Cost of Debt (Pretax) 9.03% 9.03%
Effective Marginal Tax Rate/(2)/ 44.00% 44.00%
-----------------------------------------------------------------------------
Cost of Debt (Aftertax) 5.06% 5.06%
Debt/Capitalization (Market) 25.88% 25.88%
Weighted Average Cost of Capital: 10.47% 12.17%
-----------------------------------------------------------------------------
(1) As of 07/24/00.
(2) Management estimates.
