<PAGE>
Exhibit (c)(2)
Confidential
Presentation to:
The Independent Directors Committee
of the Board of Directors of
Phoenix Investment Partners, Ltd.
PROJECT GRISWOLD
September 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
1 TRANSACTION SUMMARY AND OVERVIEW
2 BUSINESS OVERVIEW
3 COMPARISON WITH PEERS
4 VALUATION CONSIDERATIONS
APPENDIX
<PAGE>
PROJECT GRISWOLD
1 TRANSACTION SUMMARY AND OVERVIEW
<PAGE>
PROJECT GRISWOLD
Summary of Proposal
-------------------------------------- -----------------------------
ITEM OFFER TERMS
-------------------------------------- -----------------------------
Transaction PHL will purchase all of the
outstanding shares of PXP
common stock that it does not
currently own (18.0 million
shares) for $15.75 per share
in cash.
Value of Shares to be Purchased (a) $430 Million
Form Merger
Shareholder Voting Simple majority of all PXP
shareholders
Other Approvals Required Customary regulatory
Offer Price/ 2000 Earnings (b) 21.2 x
Firm Value as a Multiple of: (b)(c)
As % of AUM 1.9 %
LTM Revenues 3.7 x
LTM EBITDA 9.8
LQA EBITDA 9.2
Premium to Market:
Day Prior to Initial Offer, 7/24($10.81) 45.7 %
One Week Prior to Initial Offer, 7/17($11.25) 40.0
Four Weeks Prior to Initial Offer, 6/26($9.69) 62.6
--------------------------------------------------------------------------------
(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
Summary of Transaction Process
* On July 24th, 2000, Phoenix Home Life Mutual Insurance Company ("PHL")
made an initial offer 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
. Not interested in selling its interest in PXP
. Seek an agreed transaction
* SSB met with Independent Directors Committee on July 28/th/ to review
PHL's proposal
* After completing its due diligence, SSB met with Independent Directors
Committee on August 10/th/ to discuss PHL's proposal and possible
counter-proposals
* Since that time, Independent Directors Committee and its advisors have
communicated frequently among themselves and with PHL and its advisors
to negotiate the terms of the final proposal
. Price
. Merger Agreement
* On September 5/th/, PHL and the Independent Directors Committee
tentatively agreed on a price of $15.75 per PXP share, subject to
agreement on other deal terms
* This presentation will assist the Independent Directors Committee
evaluate PHL's final offer
. Review of PXP
. Comparison with selected peers
. Alternative valuation methodologies
. Delivery of SSB fairness opinion
<PAGE>
PROJECT GRISWOLD
Phoenix Home Life - Buy-in Rationale
STRATEGIC RATIONALE - BASED ON CONVERSATIONS WITH PXP AND 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 anticipated 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
. Anticipated 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: 48%
Institutional: 52%
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
[PIECHART]
Variable 6% $ 3.7
Aberdeen /(1)/ 1% $ 0.8
Open-End Mutual Funds 22% $13.3
Managed Accounts 19% $11.5
Closed-End Funds 7% $ 4.5
Institutional Accounts 26% $15.6
PHL General 15% $ 9.0
CBOs 3% $ 1.7
PHL Associated 1% $ 0.7
ASSET ALLOCATION: 100% = $61 B
[PIECHART]
Fixed Income 33% $20.1
Money Market 1% $ 0.5
Equity 49% $29.9
Balanced 17% $10.2
GEOGRAPHIC ASSET BREAKDOWN: 100% = $61 B
[PIECHART]
Int'l 1% $ 0.9
Domestic 99% $60.0
EQUITY STYLE: 100% = $30 B
[PIECHART]
Growth 31% $ 9.2
Int'l 3% $ 0.9
Other 2% $ 0.3
Value 40% $11.9
Blend 25% $ 7.6
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]
<TABLE>
<CAPTION>
12/31/96 12/31/97 12/31/98 12/31/99 6/30/00
<S> <C> <C> <C> <C> <C>
Open-End Mutual Funds $ 11.3 $13.0 $14.4 $18.1 $17.6
Managed Accounts $ 0.2 $ 5.6 $ 7.3 $10.4 $11.5
Closed-End Funds $ 3.0 $ 3.3 $ 3.5 $ 4.6 $ 4.5
Institutional Accounts $ 12.3 $16.2 $19.5 $22.5 $17.6
PHL $ 6.9 $ 8.4 $ 8.8 $ 9.1 $ 9.7
$ 33.6 $46.4 $53.5 $64.6 $60.8
</TABLE>
PERCENT OF TOTAL AUM
<TABLE>
<CAPTION>
CAGR
12/31/96 12/31/97 12/31/98 12/31/99 6/30/00 12/96-6/30
-------- -------- -------- -------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Open-End Mutual Funds 33.6 % 28.0 % 26.9 % 28.0 % 28.9 % 13.4 %
Managed Accounts 0.7 12.0 13.7 16.1 18.9 33.6/(1)/
Closed-End Funds 8.9 7.2 6.6 7.1 7.5 12.8
Institutional Accounts 36.5 34.8 36.4 34.8 28.9 10.9
PHL 20.4 18.0 16.4 14.0 15.9 10.3
-------- -------- -------- -------- ------- ----------
100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 18.4 %
======== ======== ======== ======== ======= ==========
Memo: Structured Products as % of Total: 0.0 % 0.5 % 2.0 % 2.8 % 249.5 %/(1)/
</TABLE>
Source: SEC Filings, Company Data
N.B. Institutional accounts include structured products.
(1) CAGR calculations for Managed Accounts and Structured Products use 12/97 and
12/98 as the base year, respectively.
PXP operates in a number of highly attractive segments.
While each of PXP's businesses has experienced growth, the managed accounts have
been strongest and are expected by management to continue improving.
Acquisitions and divestitures have impacted growth rates.
<PAGE>
PROJECT GRISWOLD
AUM Growth by Asset Class
TOTAL AUM
($ in billions)
[GRAPH]
12/31/96 12/31/97 12/31/98 12/31/99 6/30/00
Fixed Income 8.1 18.4 20.7 20.7 20.1
Equity 10.7 15.9 19.1 30.1 29.9
Balanced 14.2 11.7 13.3 13.2 10.2
Money Market 0.6 0.4 0.4 0.7 0.5
33.6 46.4 53.5 64.6 60.8
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
* 45% of rated mutual fund assets under management are in 4- or 5- star
rated funds.
<TABLE>
<CAPTION>
AUM at % of Products Per Style Ratings Net Flows
................ .................. ...................
06/30/00 Total Total Rated 5 Stars 4 Stars YTD 2000 1999
-------- -------- ------------------ -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Equity
Value $ 1,507 8.3% 1 1 0 0 ($137) ($ 233)
Growth 7,843 43.4 30 15 7 6 (67) (645)
Blend 784 4.3 6 3 0 1 (210) (304)
International 991 5.5 12 8 0 4 (133) (152)
Other 924 5.1 12 6 0 0 (93) (161)
-------- -------- -------- -------- -------- ------- -------- --------
Subtotal 12,049 66.7 61 33 7 11 (640) (1,496)
Fixed Income
Taxable Fixed Income 987 5.5 26 13 2 0 (104) (258)
Municipal 163 0.9 5 2 0 0 (15) (30)
-------- -------- -------- -------- -------- ------- -------- --------
Subtotal 1,150 6.4 31 15 2 0 (119) (287)
Money Market 380 2.1 2 0 0 0 (55) (115)
Closed End Funds 4,496 24.9 5 5 0 0 NM NM
-------- -------- -------- -------- -------- ------- -------- --------
Total Mutual Fund $18,075 100.0% 99 53 9 11 ($814) ($1,668)
======== ======== ======== ======= ======== ======= ======== ========
Morningstar Rating Per Investment Style - By AUM
..........................................................
5 4 3 2 1 Unrated
======== ======== ======== ======= ======== =======
Equity
Value -- -- $ 1,507 -- -- --
Growth 1,909 4,936 -- 338 -- 660
Blend -- 205 297 176 -- 106
International -- 425 444 13 101 8
Other -- -- 874 32 18 --
-------- -------- -------- ------- ------ -------
Subtotal 1,909 5,567 3,122 559 120 774
Fixed Income
Taxable Fixed Income 47 -- 464 462 15 --
Municipal -- -- 78 85 -- --
-------- -------- -------- ------- ------ -------
Subtotal 47 -- 542 547 15 --
Money Market -- -- -- -- -- 380
Closed End Funds -- -- 1,475 3,021 -- --
-------- -------- -------- ------- ------ -------
Total Mutual Funds $1,955 5,567 $5,139 $4,126 $135 $1,154
======== ======== ======== ======= ====== =======
% of Total Rated AUM 11.6 % 32.9 % 30.4 % 24.4 % 0.8 %
<CAPTION>
MUTUAL FUND SUMMARY BY FAMILY
AUM at % of Products Per Family Ratings Net Flows
................... .................. ...................
06/30/00 Total Total Rated 5 Stars 4 Stars YTD 2000 1999
-------- -------- ----------------- -------- ------- -------- --------
PIC $ 8,889 49.2 % 45 23 3 6 ($159) ($884)
Duff & Phelps 358 2.0 9 3 0 0 (96) (28)
Seneca 500 2.8 8 5 3 1 (459) (54)
Engemann 2,597 14.4 12 11 3 4 191 94
Zweig 1,237 6.8 20 6 0 0 (291) (796)
-------- -------- -------- ------- ------- -------- ------- --------
Total Open End Funds 13,580 75.1 94 48 9 11 (814) (1,668)
Closed End Funds 4,496 24.9 5 5 0 0 -- --
-------- -------- -------- ------- ------- -------- ------- --------
Total Mutual Funds $18,075 100.0% 99 53 9 11 ($814) ($1,668)
======== ======== ======== ======= ======= ======== ======= ========
Morningstar Rating Per Family Style - By AUM
..........................................................
5 4 3 2 1 Unrated
-------- -------- -------- ------- -------- -------
PIC $ 782 $3,876 $3,027 $425 $101 $678
Duff & Phelps --- --- --- 137 --- 221
Seneca 119 356 --- --- 18 6
Engemann 1,054 1,334 193 --- 15 ---
Zweig --- --- 444 544 --- 249
-------- -------- -------- ------- -------- -------
Total Open End Funds 1,955 5,567 3,664 1,105 135 1,154
Closed End Funds -- -- 1,475 3,021 --- ---
-------- -------- -------- ------- -------- -------
Total Mutual Funds $ 1,955 $5,567 $ 5,139 $4,126 $135 $1,154
======== ======== ======== ======= ======== =======
</TABLE>
Source: Financial Research Corporation as of 6/30/00. May not tie to Company
data.
<PAGE>
Comparative Performance - 15 Largest Mutual Funds
* Top 15 mutual funds represent 62% of total mutual fund assets.
<TABLE>
<CAPTION>
YTD
Assets % of Morningstar Return Annualized Return (as of 6/30/00)
---------------------------------
Top Fifteen Mutual Funds 06/30/00 Total Objective 06/30/00 1 Year 3 Year 5 Year
------------------------ ---------- --------- ----------- ---------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 PhnxGdwn Grth $ 3,246 17.96% Growth 0.29% 22.61% 23.20% 21.47%
2 PhnxGdwn Bal 1,507 8.34 Balanced 0.43 6.87 11.85 13.15
3 PhnxEng FocsGr 788 4.36 Growth 1.23 31.83 29.77 25.63
4 PhnxGdwn StrThm 776 4.29 Growth 12.45 46.16 39.26 --
5 PhnxEng AggGr 684 3.79 Agg Growth 7.11 63.38 42.13 32.84
6 PhnxGdwn I&G 681 3.77 Balanced 0.85 3.98 8.20 11.03
7 PhnxEng NftyFty 546 3.02 Growth 2.49 21.14 23.46 24.11
8 PhnxOakh G&I 504 2.79 Growth&Inc 0.15 6.95 -- --
9 PhnxZwg MngdAst 444 2.46 MultiGlobl 0.53 4.14 9.50 10.64
10 PhnxGdwn Hi Yld 421 2.33 Corp:HY (3.25) 3.03 1.72 7.05
11 PhnxEng Sm&MdCp 370 2.05 Growth 3.59 80.78 33.81 36.20
12 PhnxSnca Grth 356 1.97 Growth 0.48 24.73 25.56 --
13 PhnxZwg Stratgy 320 1.77 Growth (0.94) (1.58) 3.34 7.06
14 PhnxOakh StrAll 297 1.64 Asset Allo 0.34 6.97 13.35 13.02
15 PhnxAbrdn WWOpp 213 1.18 World Stk (1.26) 11.00 16.44 16.61
----------- ---------
Top Fifteen Mutual Funds 11,153 61.71
Other Open-End Funds 2,426 13.42
Closed-End Funds 4,496 24.87
----------- ---------
Total Mutual Funds $18,075 100.00%
=========== =========
<CAPTION>
Net Flows Morningstar
-----------------------------------------
Top Fifteen Mutual Funds YTD 6/30/00 1999 1998 Rating (1)
------------------------ ------------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
1 PhnxGdwn Grth ($160.5) ($339.7) ($345.6) 4
2 PhnxGdwn Bal (136.8) (233.4) (278.8) 3
3 PhnxEng FocsGr (7.4) (9.6) (80.1) 4
4 PhnxGdwn StrThm 503.5 20.0 (41.6) 5
5 PhnxEng AggGr 67.5 17.2 (29.2) 5
6 PhnxGdwn I&G (103.2) (181.7) 5.3 3
7 PhnxEng NftyFty 1.5 26.7 (1.2) 4
8 PhnxOakh G&I 36.4 197.8 165.4 NR
9 PhnxZwg MngdAst (81.9) (97.1) (26.1) 3
10 PhnxGdwn Hi Yld (41.7) (95.8) (26.7) 3
11 PhnxEng Sm&MdCp 121.6 35.8 36.7 5
12 PhnxSnca Grth 252.6 9.4 9.2 4
13 PhnxZwg Stratgy (127.7) (453.1) (275.6) 2
14 PhnxOakh StrAll (20.8) (41.7) (45.6) 3
15 PhnxAbrdn WWOpp (12.4) 0.5 (4.1) 4
Top Fifteen Mutual Funds
Other Open-End Funds
Closed-End Funds
Total Mutual Funds
</TABLE>
Source: Financial Research Corporation as of 6/30/00. May not tie to Company
data.
(1) Rating for Class A shares.
<PAGE>
PROJECT GRISWOLD
Mutual Fund Performance
BY MORNINGSTAR RATED FUNDS BY MORNINGSTAR RATED ASSETS
[GRAPH] [GRAPH]
Source: Financial Research Corporation as of 6/30/00
* 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 as of July 13, 2000)
. Phoenix Hollister Value Equity ($72 MM in AUM as of July 13, 2000)
. Phoenix Hollister Small Blend Fund ($109 in AUM as of July 13, 2000)
Source: Company data.
<PAGE>
PROJECT GRISWOLD
Summary of Selected Institutional Account Products
<TABLE>
<CAPTION>
($ 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 175 1.9 3.2 4.4 5.5 5.7
Median Performance 1.7 3.3 4.4 5.7 6.0
Enhanced Cash 16 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 $15.6 billion at 12/31/99
and 6/30/00 respectively. Data for other products not available.
<PAGE>
PROJECT GRISWOLD
Managed Account Product Summary
* PXP is a leading participant and the only multi-manager in the managed
account business
. Offers 11 products through four investment partners, with one product
under development
SENECA HOLLISTER ENGEMANN DUFF & PHELPS
Large Cap Growth Large Cap Value Large Cap Growth Large Cap Core
Mid Cap Growth Small Cap Value Small-Mid Cap Growth Balanced
Tax Sensitive Growth New Economy Value Balanced
Balanced (pending)
* Marketing strategy emphasizes importance of portfolio construction
approach to building relationships with HNW brokers/clients
. Use multiple products to construct portfolio solutions
. Performance "OK" - not a "hot dot" approach
* Growth strategy
. Leverage Engemann reputation to introduce other brands ("bridging")
. Expand wholesaler salesforce
. Introduce additional products with 3 year track records
<PAGE>
PROJECT GRISWOLD
Managed Account Performance
<TABLE>
<CAPTION>
($ in millions)
Performance Data as of 6/30/2000
AUM Quarter YTD 1 Year 3 Year 5 Year
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Seneca Large Cap Growth $ 469 (2.7)% 1.1 % 26.1 % 27.8 % 26.6 %
Mid Cap Growth 433 (1.0) 24.5 76.5 40.9 33.2
Tax Sensitive Growth NA (4.8) 2.2 22.5 30.3 NA
Engemann Large Cap Growth 7,441 1.0 (4.3) 17.4 22.5 24.4
Balanced 274 3.1 (2.0) 14.9 18.9 20.3
Duff & Phelps Large Cap Core 323 (3.3) (1.7) (1.5) 12.3 20.4
Balanced 298 (1.4) (0.4) 1.1 19.8 14.0
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.
<PAGE>
PROJECT GRISWOLD
Analysis of AUM Growth
NET CASH FLOWS /(a)/
($ in millions)
<PAGE>
PROJECT GRISWOLD
[GRAPH]
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 $(283) million of net flows in closed-end funds.
<PAGE>
PROJECT GRISWOLD
Distribution Channels - Mutual Funds and Managed Accounts
($ in millions)
* Phoenix Equity and Planning Corporation acts as national distributor and
transfer agent for each investment partner
--------------------------------------------------------------------------------
1999 Domestic Mutual Fund Sales
--------------------------------------------------------------------------------
[PIE CHART APPEARS HERE]
Bank 1.0%
Financial Planner 42.2%
Wirehouse 31.6%
Regional Wirehouse 15.3%
Insurance 9.9%
<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>
--------------------------------------------------------------------------------
1999 Domestic Managed Account Sales
--------------------------------------------------------------------------------
[PIE CHART APPEARS HERE]
Financial Planner 9.8%
Regional Wirehouse 3.0%
Wirehouse 87.2%
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Top 10 Domestic Fund 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>
Source: Company data.
<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 0.40 0.34 0.45 0.47 0.47 0.50 0.49
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
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.
(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,
--------------------------------------------- ----------------------- -------
6/30/00
1996 1997 1998 1999 1999 2000 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 (2) (0.1) (0.0) 0.5 0.5 0.5 0.5 0.5
Non-Recurring Items ---- 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 0.47 0.51 NA 0.50 0.50 0.50
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
Putnam, Lovell & Thornton $ 0.86 $ 1.03 na na na
Barrington Research /(2)/ 0.85 0.98 na 15.0 1.71
IBES Median 0.86 1.01 na 15.0 /(3)/ 1.76
Management 2000 Financial Plan
As Reported $ 0.80 $ 0.87 $ 1.11 14.5% /(4)/ $ 1.67
Adjusted /(5)/ 0.79 0.85 1.09 14.8 /(4)/ 1.65
Morgan Stanley Estimates $ 0.78 $ 0.83 na 14.0 /(6)/ $ 1.40
</TABLE>
_________________________________
(1) Based on long-term growth rate.
(2) Research dated 7/25/00, one day after initial offer received from PHL.
(3) Includes only Barrington Research.
(4) Assumes long-term growth rate of Adjusted EBITDA equal to 10.5%, the 2000-
2002 growth rate. Fixed expenses held constant.
(5) Adjusted to reflect sale of Duff & Phelps Cleveland, assumed to contribute
approximately $2.0 million per annum to operating income.
(6) Estimated by SSB based on conversations with Morgan Stanley, advisor to PHL.
<PAGE>
PROJECT GRISWOLD
Historical Statement of Condition
<TABLE>
<CAPTION>
($ 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 filings and Company data.
<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 --- 3.2 x 4.3 x 3.4 x
EBITDA --- 9.9 9.8 7.6
Valuation Multiples Adjusted for Earn-out /(5)/
AUM --- 1.5 % 4.1 % 3.5 %
Revenues --- 3.3 x 5.0 x 3.9 x
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
------------------------------------------------------------------------------------------------------------------------------------
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.
</TABLE>
<PAGE>
PROJECT GRISWOLD
PXP Ownership Summary - 6/30/00
(shares in thousands)
<TABLE>
<CAPTION>
Outstanding 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 6.6% 3,857 6.2%
Dimensional FD Advisors, Inc. 2,234 5.0 2,234 3.8 2,234 3.6
Tweedy, Browne Company, L.L.C. 2,135 4.8 2,135 3.7 2,135 3.4
I. G. Investment Mgmt, Ltd. 1,000 2.3 1,000 1.7 1,000 1.6
Royce & Associates, Inc. 924 2.1 924 1.6 924 1.5
Keeley Asset Management 541 1.2 541 0.9 541 0.9
Rothschild Asset Mgmt, Inc. 368 0.8 368 0.6 368 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 0.4 255 0.4
Scudder Kemper Invts, Inc. 250 0.6 250 0.4 250 0.4
General Motors Invt Mgmt Corp. 140 0.3 140 0.2 140 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)/ 10.2 5,940/(3)/ 9.6
------------------------------------------------------------------------------------------------------------------------------
Total Institutional Shareholders 14,321 32.3 19,466 33.5% 19,466 31.3%
Retail and Other Owners 1,863 4.2 1,863 3.2 1,863 3.0
Insiders/(4)/ 1,797 4.0 5,958/(5)/ 10.3 10,059/(5)/ 16.2
------------------------------------------------------------------------------------------------------------------------------
Sub-Total 17,981 40.5 27,287 47.0 31,388 50.5
Phoenix Home Life 26,400 59.5 30,754 53.0 30,754 49.5
==============================================================================================================================
Total 44,381 100.0% 58,041 100.0% 62,142 100.0%
</TABLE>
(1) Based on the final offer price of $15.75 and uses the 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 $10.01.
<PAGE>
PROJECT GRISWOLD
Price Volume Graph
WEEKLY DATA: 11/1/95 TO 9/8/00
[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) May 15, 2000: Unicredito Italiano Group announces intention to purchase
Pioneer Group.
(g) July 24, 2000: Phoenix Home Life makes initial offer to acquire the
remaining outstanding shares of PXP.
7/24 9/08
------- -------
Price: $ 10.81 $ 14.50
Equity Value $ 624 $ 836
Public Float 231 309
Valuation Multiples: (a)
AUM 1.4% 1.7%
Revenues 2.7x 3.5x
EBITDA 7.2 9.2
Pretax Inc. 9.2 12.7
Op. CF 7.7 10.6
Earnings:
LTM 14.5x 20.0x
2000E (b) 14.1 19.4
2001E (b) 13.0% 17.9%
Div. Yield 3.0% 2.2%
N.B. Share count on a diluted basis using the treasury stock method.
(a) LTM Revenue and EBITDA adjusted for minority interest. Net debt adjusted
for Pasadena contingent payment.
(b) Source: PXP Management.
<PAGE>
PROJECT GRISWOLD
Price Volume Graph (Daily)
DAILY DATA: 1/1/2000 TO 9/8/00
[LINE GRAPH]
(a) May 15, 2000: Unicredito Italiano Group announces intention to purchase
Pioneer Group.
(b) July 24, 2000: Phoenix Home Life makes initial offer to acquire the
remaining outstanding shares of PXP.
7/24 9/08
------- -------
Price: $10.81 $ 14.50
Equity Value $ 624 $ 836
Public Float 231 309
Valuation Multiples: (a)
AUM 1.4 1.7
Revenues 2.7x 3.5x
EBITDA 7.2 9.2
Pretax Inc. 9.2 12.7
Op. CF 7.7 10.6
Earnings:
LTM 14.5x 20.0x
2000E (b) 14.1 19.4
2001E (b) 13.0 17.9
Div. Yield 3.0 2.2
N.B. Share count on a diluted basis using the treasury stock method.
(a) LTM Revenue and EBITDA adjusted for minority interest. Net debt adjusted
for Pasadena contingent payment.
(b) Source: PXP Management.
<PAGE>
PROJECT GRISWOLD
3 COMPARISON WITH PEERS
<PAGE>
PROJECT GRISWOLD
Selected Comparable Company Analysis: AUM
<TABLE>
<CAPTION>
($ in Millions)
Assets Under Management FYE As % of AUM (1):
---------------------------------------------- -------------------
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 (2) $ 60,832 47.7% 52.3% 57.6% 42.4% 99.0% 1.0% 24.3% 0.52% 0.45% 0.11%
------------------------------------------------------------------------------------------------------------------------------------
Affiliated Managers Group, Inc. 89,300 9.0 91.0 65.0 35.0 73.0 27.0 62.7 0.57 0.57 0.10
AMVESCAP PLC 389,000 61.0 39.0 66.0 34.0 61.0 39.0 55.8 0.54 0.54 0.13
BlackRock Inc. 177,337 37.0 63.0 13.2 86.8 98.0 2.0 25.8 0.24 0.23 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. 125,809 83.0 17.0 17.9 82.1 97.0 3.0 18.6 0.50 0.28 0.18
Franklin Resources, Inc. 229,900 73.0 27.0 66.6 33.4 30.0 70.0 12.9 1.01 0.61 0.32
Gabelli Asset Management Inc. 22,997 54.0 46.0 91.3 8.7 100.0 ---- 32.1 0.91 0.75 0.38
John Nuveen 60,299 65.4 34.6 25.1 74.9 100.0 ---- 21.7 0.58 0.51 0.28
Neuberger Berman Inc. 54,406 31.4 68.6 79.0 21.0 100.0 ---- na 1.08 0.70 0.38
Stilwell Financial 313,000 75.0 25.0 95.0 5.0 75.0 25.0 72.3 0.58 0.47 0.26
T. Rowe Price Associates, Inc. 179,000 62.5 37.5 77.8 22.2 78.1 21.9 21.7 0.65 0.49 0.25
Waddell & Reed Financial Inc. 39,751 84.9 15.1 74.7 25.3 92.5 7.5 25.1 1.13 0.57 0.50
ALL COMPANIES (2)
------------------------------------------------------------------------------------------------------------------------------------
Mean 58.3% 41.7% 60.0% 40.0% 83.7% 16.3% 34.7% 0.72% 0.51% 0.50%
Median 62.8 37.2 66.3 33.7 94.7 5.3 25.8 0.62 0.52 0.27
------------------------------------------------------------------------------------------------------------------------------------
SMALL CAP COMPANIES (2) (3)
------------------------------------------------------------------------------------------------------------------------------------
Mean 55.3% 44.7% 60.8% 39.2% 93.1% 6.9% 34.9% 0.82% 0.57% 0.50%
Median 63.0 37.0 65.0 35.0 100.0 --- 32.1 0.89 0.57 0.38
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
N.B. Financial data as of or for the twelve months ended June 30, 2000.
(1) Based on period end AUM.
(2) PXP has been excluded from the mean and median calculations. Revenues,
Advisory Revenues and EBT as a % of AUM include Seneca minority interest.
(3) Includes companies with less than $2 billion in market capitalization (AMG,
GBL, EV, JNC and WDR).
<PAGE>
PROJECT GRISWOLD
Selected Comparable Company Analysis: Profitability Statistics
<TABLE>
<CAPTION>
($ in Millions)
LTM Profitability Statistics
--------------------------------
Comp.
Last Twelve Month Performance: Adv./ Exp./ Margin (%): FYE - 3 Yr. CAGR
------------------------------------------ ------------------ ----------------
Total Advisory Net Op. Cash Total Total Net Net
Rev. Rev. EBITDA Inc. Flow (1) Rev. Rev. EBITDA EBT Inc. Rev. Income
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Phoenix Investment Partners (2) $ 303.6 $ 262.0 $ 115.0 $ 41.8 $ 78.7 86.3% 38.6% 37.9% 21.8% 13.8% 23.4% 4.1%
------------------------------------------------------------------------------------------------------------------------------------
Affiliated Managers Group, Inc. $ 513.1 $ 513.1 $ 115.1 $ 49.8 $ 78.7 100.0% 44.0% 22.4% 17.2% 9.7% 105.0% nm
AMVESCAP PLC (3) 2,086.0 2,086.0 811.2 259.7 522.9 100.0 ---- 38.9 24.2 12.5 63.3 39.5%
BlackRock Inc. 421.5 402.1 145.4 73.5 92.1 95.4 35.9 34.5 30.2 17.4 37.5 87.9
Eaton Vance Corporation 396.2 203.5 242.2 153.6 236.0 51.4 17.6 61.1 63.2 38.8 24.1 37.8
Federated Investors, Inc. 627.1 355.4 259.5 141.1 211.8 56.7 25.4 41.4 35.2 22.5 22.4 108.9
Franklin Resources, Inc. 2,321.1 1,392.2 781.7 553.9 754.0 60.0 22.6 33.7 31.4 23.9 14.2 14.3
Gabelli Asset Management Inc. 208.8 171.7 83.7 49.8 50.5 82.2 40.6 40.1 41.6 23.8 na na
John Nuveen 350.7 305.2 168.8 102.4 118.4 87.0 27.7 48.1 48.6 29.2 16.6 10.3
Neuberger Berman Inc. (4) 586.1 378.7 218.9 69.7 79.9 64.6 46.1 37.3 35.6 11.9 na na
Stilwell Financial 1,804.9 1,483.5 862.5 483.3 539.5 82.2 23.8 47.8 44.8 26.8 35.7 38.4
T. Rowe Price Associates, Inc. 1,161.8 879.7 512.2 276.7 313.5 75.7 30.2 44.1 37.9 23.8 20.9 34.5
Waddell & Reed Financial Inc. 449.0 227.7 215.7 121.4 128.3 50.7 12.2 48.0 44.0 27.0 17.3 13.0
ALL COMPANIES (2)
------------------------------------------------------------------------------------------------------------------------------------
Mean 75.5% 27.2% 41.5% 37.8% 22.3% 35.7% 42.7%
Median 79.0 26.6 40.7 36.8 23.8 23.2 37.8
------------------------------------------------------------------------------------------------------------------------------------
SMALL CAP COMPANIES (2)(5)
------------------------------------------------------------------------------------------------------------------------------------
Mean 74.3% 28.4% 44.0% 42.9% 25.7% 40.7% 20.4%
Median 82.2 27.7 48.0 44.0 27.0 20.7 13.0
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
N.B. Financial data as of or for the twelve months ended June 30, 2000.
(1) Operating Cash Flow equals net income plus depreciation and amortization.
(2) PXP has been excluded from the mean and median calculations. Income
Statement data adjusted for Seneca minority interest and interest on
convertible debt.
(3) Financial data is adjusted to reflect US GAAP.
(4) Revenue CAGR for Neuberger Berman is only available for 1 year.
(5) Includes companies with less than $2 billion in market capitalization (AMG,
GBL, EV, JNC and WDR).
<PAGE>
PROJECT GRISWOLD
Summary Operating Statistics
<TABLE>
<CAPTION>
($ in Millions)
Total Revenue as a % of AUM (1) Advisory Revenue as a % of AUM (1)
--------------------------------- ------------------------------------
1997 1998 1999 1997 1998 1999
-------- -------- -------- -------- -------- --------
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Phoenix Investment Partners
As Reported 0.37% 0.45% 0.48% 0.31% 0.39% 0.42%
Excluding PHL General Account 0.41 0.52 0.55 0.34 0.45 0.47
----------------------------------------------------------------------------------------------------------------------
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
ALL COMPANIES (2)
----------------------------------------------------------------------------------------------------------------------
Mean 0.67 0.70 0.68 0.47 0.51 0.48
----------------------------------------------------------------------------------------------------------------------
SMALL CAP COMPANIES (2)(3)
----------------------------------------------------------------------------------------------------------------------
Mean 0.72 0.76 0.76 0.48 0.55 0.54
----------------------------------------------------------------------------------------------------------------------
</TABLE>
N.B. Financial data as of or for the twelve months ended June 30, 2000.
(1) Based on period end AUM except PXP which uses average AUM.
(2) Mean excludes PXP.
(3) Includes companies with less than $2 billion in market capitalization
(AMG, GBL, EV, JNC and WDR).
<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 (1) 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 46.8 43.5
ALL COMPANIES (2)
----------------------------------------------------------------------------------------------------------------------------
Mean 43.5 43.5 41.4 31.1 31.9 37.7
----------------------------------------------------------------------------------------------------------------------------
SMALL CAP COMPANIES (2)(3)
----------------------------------------------------------------------------------------------------------------------------
Mean 46.5 47.3 43.4 32.1 33.5 42.8
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
N.B. Financial data as of or for the twelve months ended June 30, 2000.
(1) PXP's financial information has been adjusted for Seneca minority interest.
(2) Mean excludes PXP.
(3) Includes companies with less than $2 billion in market capitalization (AMG,
GBL, EV, JNC and WDR).
<PAGE>
PROJECT GRISWOLD
Summary Operating Statistics (continued)
<TABLE>
<CAPTION>
EBT as a % of AUM (1) Comp. Expense to Total Revenue
-------------------------------------------- -------------------------------------------------
1997 1998 1999 1997 1998 1999
-------------- --------------- ----------- ------------- ------------------ --------------
------------------------------------------------------------------------------------------------------------------------------------
Phoenix Investment Partners 0.08% 0.08% 0.09% 44.2% 40.8% 39.8%
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
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
ALL COMPANIES (2)
------------------------------------------------------------------------------------------------------------------------------------
Mean 0.23 0.24 0.27 28.5 27.8 26.9
------------------------------------------------------------------------------------------------------------------------------------
SMALL CAP COMPANIES (2)(3)
Mean 0.27 0.27 0.34 30.5 28.6 28.6
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
N.B. Financial data as of or for the twelve months ended June 30, 2000.
(1) Based on period end AUM except PXP which uses average AUM.
(2) Mean excludes PXP.
(3) Includes companies with less than $2 billion in market capitalization (AMG,
GBL, EV, JNC and WDR).
<PAGE>
PROJECT GRISWOLD
Selected Comparable Company Analysis:
Market Statistics
($ in Millions, except per share data)
<TABLE>
<CAPTION>
Firm Value as a Multiple of:
---------------------------------
Stock Price As % of 52-Wk Mkt. Firm as % of LQA LTM
---------------- ----------------------
9/8/00 High Low Cap. Value(1) AUM EBITDA Rev. EBITDA EBIT
----------------------------------------------------------------------------------------------------------------------------
Phoenix Investment Partners (4) $14.50 95% 230% $836 $1,055 1.7% 8.2x 3.5x 9.2x 13.5x
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Affiliated Managers Group, Inc. $58.00 97% 264% $1,283 $1,485 1.7% 7.5x 2.9x 12.9x 17.1x
AMVESCAP PLC (5) 97.88 84 272 12,725 13,336 3.4 15.2 6.4 16.4 24.3
BlackRock Inc. 37.00 87 296 2,363 2,246 1.3 15.2 5.3 15.5 17.7
Eaton Vance Corporation 50.06 91 183 1,769 1,743 3.9 6.6 4.4 7.2 7.3
Federated Investors, Inc. 22.63 82 221 2,680 2,966 2.4 8.6 4.7 11.4 12.1
Franklin Resources, Inc. 39.88 98 162 9,711 8,935 3.9 11.2 3.8 11.4 13.4
Gabelli Asset Management Inc. 28.88 95 204 854 815 3.5 8.4 3.9 9.7 9.8
John Nuveen 47.63 101 142 1,487 1,505 2.5 9.1 4.3 8.9 9.6
Neuberger Berman Inc. 61.13 99 259 3,015 3,120 5.7 7.0 5.3 14.3 14.9
Stilwell Financial 51.81 99 141 11,635 11,276 3.6 9.4 6.2 13.1 14.0
T. Rowe Price Associates, Inc. 46.88 98 181 5,657 5,240 2.9 12.7 4.5 10.2 11.0
Waddell & Reed Financial Inc. 37.13 94 276 1,555 1,474 3.7 5.9 3.3 6.8 7.1
ALL COMPANIES (4)
----------------------------------------------------------------------------------------------------------------------------
Mean 3.2% 9.8x 4.6x 11.5x 13.2x
Median 3.5 8.9 4.5 11.4 12.7
----------------------------------------------------------------------------------------------------------------------------
SMALL CAP COMPANIES (4) (6)
----------------------------------------------------------------------------------------------------------------------------
Mean 3.1% 7.5x 3.8x 9.1x 10.2x
Median 3.5 7.5 3.9 8.9 9.6
----------------------------------------------------------------------------------------------------------------------------
<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 12.7x 20.0x 10.6x 18.3x 19.4x 17.9x 15.0%
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Affiliated Managers Group, In 14.6x c. 25.7x 16.4x 13.6x 15.2x 13.2x 22.5%
AMVESCAP PLC 25.2 49.0 24.3 24.5 27.6 23.6 20.0
BlackRock Inc. 18.6 32.2 25.7 24.9 28.5 23.9 16.0
Eaton Vance Corporation 7.1 11.5 7.5 14.6 15.9 14.2 20.0
Federated Investors, Inc. 12.1 19.0 12.7 16.7 18.5 16.1 16.0
Franklin Resources, Inc. 13.3 17.5 12.9 15.6 17.0 15.2 15.0
Gabelli Asset Management Inc. 9.8 17.2 16.9 13.6 15.0 13.1 15.0
John Nuveen 8.7 14.5 12.6 14.0 14.9 13.7 10.0
Neuberger Berman Inc. 14.4 43.3 37.8 19.6 21.4 19.1 12.5
Stilwell Financial 14.4 24.1 21.6 17.1 19.7 16.3 17.0
T. Rowe Price Associates, Inc 12.8 20.4 18.0 20.3 21.4 20.0 15.0
Waddell & Reed Financial Inc. 7.9 12.8 12.1 20.7 22.6 20.1 15.0
ALL COMPANIES (4)
--------------------------------------------------------------------------------------------------------------
Mean 13.3x 23.9x 18.2x 17.9x 19.8x 17.4x 16.2%
Median 13.1 19.7 16.7 16.9 19.1 16.2 15.5
--------------------------------------------------------------------------------------------------------------
SMALL CAP COMPANIES (4) (6)
--------------------------------------------------------------------------------------------------------------
Mean 9.6x 16.4x 13.1x 15.3x 16.7x 14.9x 16.5%
Median 8.7 14.5 12.6 14.0 15.2 13.7 15.0
--------------------------------------------------------------------------------------------------------------
</TABLE>
N.B. Financial data as of or for the twelve months ended June 30, 2000.
(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) Based on IBES median estimates except for PXP which uses management
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.
(6) Includes companies with less than $2 billion in market capitalization (AMG,
GBL, EV, JNC and WDR).
<PAGE>
PROJECT GRISWOLD
Price Performance
WEEKLY DATA: 11/15/95 TO 9/8/00
[GRAPH]
____PXP _____ Small Cap Managers _____ All Asset Managers ____ SPX
<TABLE>
<CAPTION>
RETURN MATRIX
Return through 7/24
---------------------------------------------------------------------------------
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 19.5% 24.4% 67.4% 89.3% 60.4% 2.2% 5.2%/(2)/
Small Cap Managers/(3)/ 19.6 24.3 57.8 54.3 25.3 (5.3) 13.6
All Asset Managers/(4)/ 24.7 18.4 58.5 65.3 30.4 9.7 13.0
S&P 500 21.1 17.2 10.9 2.7 1.8 2.2 2.1
</TABLE>
(1) Annualized returns.
(2) Excludes increase of $3.07 per share on 7/25/00.
(3) Small Cap Managers Index includes AMG, GBL, EV, JNC, and WDR.
(4) All Asset Managers Index includes 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
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Premium Analysis Premium to
--------------------------------------------------
Initial Offer Final Offer
---------------------- ---------------------
Benchmark $ 12.50 $ 15.75
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Normalized Price $ 12.29 (a) nm 28.2 %
LTM high prior to initial offer 12.06 3.6 % 30.6
-----------------------------------------------------------------------------------------------------------------------------------
Day prior to initial offer (7/24) 10.81 15.6 45.7
-----------------------------------------------------------------------------------------------------------------------------------
One week prior to initial offer (7/17) 11.25 11.1 40.0
Average during last week 11.04 13.2 42.6
-----------------------------------------------------------------------------------------------------------------------------------
Four weeks prior to initial offer (6/26) 9.69 29.0 62.6
Average during four weeks 10.86 15.1 45.0
-----------------------------------------------------------------------------------------------------------------------------------
Three months prior to initial offer (4/24) 7.94 57.5 98.4
Average during three months 9.49 31.7 65.9
-----------------------------------------------------------------------------------------------------------------------------------
LTM low prior to initial offer (2/2) 6.38 96.1 147.1
</TABLE>
(a) Based on increase in Small Cap Managers Index since July 24, 2000.
<PAGE>
PROJECT GRISWOLD
<TABLE>
<CAPTION>
Implied Valuation Summary
($ in Millions, Except Per Share Data)
---------
Initial
Offer
---------
Valuation Methodology $ 10.75 $11.75 $12.75 $ 13.75 $ 14.75
-------------------------------------------------
<S> <C> <C> <C> <C> <C>
COMPARABLE COMPANIES ANALYSIS
Small Companies $12.08 - $13.50
All Metrics
Prospective Metrics $10.80-$12.07
All Companies
All Metrics
Prospective Metrics $13.28 - $14.81
GOING PRIVATE PREMIUMS (1992 to Present) $11.77 - $13.49
Financial Institutions
All Cash Transactions $12.09 - $13.74
GOING PRIVATE PREMIUMS (1999 to Present) $14.17 - $15.72
Financial Institutions
All Cash Transactions $13.62 $14.17
DISCOUNTED CASH FLOW ANALYSIS/(1)(2)/
PRIVATE MARKET ANALYSIS
Reference Data
---------------------------
Transaction Metrics Reported Adjusted/(1)(3)/ $ 10.75 $11.75 $12.75 $ 13.75 $ 14.75
--------------------------------------------------------------------------
Diluted Market Cap. $ 607.3 N/A $603.4 $665.6 $727.7 $ 789.9 $ 852.0
Implied Firm Value (4) 825.5 N/A 821.6 883.7 945.9 1,008.0 1,070.1
Premium to Market as
of July 24 $ 10.81 N/A (0.6)% 8.7% 17.9% 27.2% 36.4%
1 week prior 11.25 N/A (4.4) 4.4 13.3 22.2 31.1
4 weeks prior 9.69 N/A 11.0 21.3 31.6 41.9 52.3
Valuation Metrics
Firm Value Multiples
As % of AUM $ 60,832 1.4% 1.5 % 1.6% 1.7% 1.8%
LTM Revenues 315.7 $303.6 2.7x 2.9 x 3.1x 3.3x 3.5x
LTM EBITDA 119.9 115.0 7.1 7.7 8.2 8.8 9.3
LQA EBITDA 128.5 122.5 6.7 7.2 7.7 8.2 8.7
Equity Value Multiples
LTM Pre-tax Earnings $ 61.5 $ 66.1 9.1 x 10.1 x 11.0x 11.9x 12.9x
LTM Net Income 39.3 41.8 14.4 15.9 17.4 18.9 20.4
LTM Cash Flow (5) 76.2 78.7 7.7 8.5 9.2 10.0 10.8
2000E Earnings (1) 40.5 43.1 14.0 15.5 16.9 18.3 19.8
2001E Earnings (1) 44.0 46.6 12.9 14.3 15.6 16.9 18.3
<CAPTION>
----------
Final
Offer
----------
Valuation Methodology $ 15.75 $16.75 $17.75 $18.75 $19.75
-------------------------------------------------
<S> <C> <C> <C> <C> <C>
COMPARABLE COMPANIES ANALYSIS
Small Companies
All Metrics
Prospective Metrics
All Companies
All Metrics $15.64 - $17.44
Prospective Metrics
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)(2)/ $15.85 - $21.23
PRIVATE MARKET ANALYSIS $18.33 - $20.45
Transaction Metrics $ 15.75 $ 16.75 $ 17.75 $18.75 $ 19.75
-----------------------------------------------
Diluted Market Cap. $ 914.1 $ 976.3 $1,038.4 $1,100.6 $1,162.7
Implied Firm Value (4) 1,132.3 1,194.4 1,256.6 1,318.7 1,380.9
Premium to Market as
of July 24 45.7% 54.9% 64.2% 73.4% 82.7%
1 week prior 40.0 48.9 57.8 66.7 75.6
4 weeks prior 62.6 72.9 83.2 93.5 103.9
Valuation Metrics
Firm Value Multiples
As % of AUM 1.9% 2.0% 21.1% 2.2% 2.3%
LTM Revenues 3.7x 3.9x 4.1x 4.3x 4.5x
LTM EBITDA 9.8 10.4 10.9 11.5 12.0
LQA EBITDA 9.2 9.8 10.3 10.8 11.3
Equity Value Multiples
LTM Pre-tax Earnings 13.8x 14.8x 15.7x 16.6x 17.6x
LTM Net Income 21.8 23.3 24.8 26.3 27.8
LTM Cash Flow (5) 11.6 12.4 13.2 14.0 14.8
2000E Earnings (1) 21.2 22.7 24.1 25.6 27.0
2001E Earnings (1) 19.6 20.9 22.3 23.6 24.9
-----------------------------------------------------------------------------------------
</TABLE>
(1) Based on PXP 2000 Financial Plan.
(2) Assuming 13% to 15% range of discount rates used by SSB Research, value
range would be $15.18 to $20.35.
(3) Adjusted for Seneca minority interest, interest on convertible debt and
Engemann liability.
(4) Adjusted for net debt.
(5) Net income plus depreciation and amortization.
<PAGE>
PROJECT GRISWOLD
Valuation Summary Implied Median Multiples
<TABLE>
<CAPTION>
REFERENCE DATA (a) ALL COMPANIES SMALL CAP COMPANIES
------------------ ------------- -------------------
------------------------------------------------------------------------------------------------------------------------------------
Implied Equity
(Dollars in millions) Reported Adjusted (b) Median Valuation (c) Valuation Range Median Valuation (c)
------------------------------------------------------------------------------------------------------------------------------------
PUBLIC MARKET ANALYSIS -
ALL METRICS (d)
<S> <C> <C> <C> <C>
Firm Value/ LTM Revenues $ 315.7 $ 303.6 4.2 x --- 4.7 x $ 1,066.8 --- $1,202.0 3.7 x --- 4.1 x
Firm Value/ LQA EBITDA 128.5 122.5 8.4 --- 9.3 812.5 --- 921.0 7.1 --- 7.9
Firm Value/ LTM EBITDA 119.9 115.0 10.9 --- 12.0 1,030.3 --- 1,161.7 8.5 --- 9.4
Market Value/ LTM Cash Flow (e) 76.2 78.7 15.8 --- 17.5 1,246.7 --- 1,378.0 11.9 --- 13.2
Market Value/ LTM Pre-tax Earnings 61.5 66.1 12.4 --- 13.7 821.9 --- 908.5 8.3 --- 9.2
Market Value/ LTM Earnings 39.3 41.8 18.7 --- 20.7 784.0 --- 866.5 13.8 --- 15.2
Market Value/ 2000E Earnings (e) 40.5 43.1 18.2 --- 20.1 782.3 --- 864.6 14.4 --- 15.9
Market Value/ 2001E Earnings (e) 44.0 46.6 15.4 --- 17.0 717.8 --- 793.4 13.0 --- 14.4
------------------------------------------------------------------------------------------------------------------------------------
Average Valuation Range (d) $ 907.8 $1,012.0
Per Share $ 15.64 $ 17.44
------------------------------------------------------------------------------------------------------------------------------------
PUBLIC MARKET ANALYSIS -
PROSPECTIVE METRICS (d)
Firm Value/ LQA EBITDA $ 128.5 $ 122.5 8.4 x --- 9.3 x $ 812.5 --- $ 921.0 7.1 x --- 7.9 x
Market Value/ 2000E Earnings (e) 40.5 43.1 18.2 --- 20.1 782.3 --- 864.6 14.4 --- 15.9
Market Value/ 2001E Earnings (e) 44.0 46.6 15.4 --- 17.0 717.8 --- 793.4 13.0 --- 14.4
------------------------------------------------------------------------------------------------------------------------------------
Average Valuation Range (d) $ 770.9 $ 859.7
Per Share $ 13.28 $ 14.81
------------------------------------------------------------------------------------------------------------------------------------
PRIVATE MARKET ANALYSIS
RECENT PRECEDENTS (f)
Firm Value/ LTM Revenues $ 315.7 $ 303.6 4.8 x --- 5.3 x $ 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 $ 1,063.6 -- $1,187.1
Per Share $ 18.33 -- $ 20.45
------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------------------
Implied Equity
Valuation Range
-------------------------------------------------------------------
<S> <C>
Firm Value/ LTM Revenues $ 907.4 --- $ 1,025.9
Firm Value/ LQA EBITDA 652.9 --- 744.6
Firm Value/ LTM EBITDA 755.3 --- 857.7
Market Value/ LTM Cash Flow (e) 939.3 --- 1,038.1
Market Value/ LTM Pre-tax Earnings 548.3 --- 606.0
Market Value/ LTM Earnings 576.9 --- 637.6
Market Value/ 2000E Earnings 620.3 --- 685.6
Market Value/ 2001E Earnings (e) 606.9 --- 670.8
--------------------------------------------------------------------
Average Valuation Range (d) $ 700.9 $ 783.3
Per Share $ 12.08 $ 13.50
--------------------------------------------------------------------
PUBLIC MARKET ANALYSIS -
PROSPECTIVE METRICS (d)
Firm Value/ LQA EBITDA $ 652.9 --- $ 744.6
Market Value/ 2000E Earnings (e) 620.3 --- 685.6
Market Value/ 2001E Earnings (e) 606.9 --- 670.8
--------------------------------------------------------------------
Average Valuation Range (d) $ 626.7 $ 700.3
Per Share $ 10.80 $ 12.07
--------------------------------------------------------------------
</TABLE>
N.B. Assumes 58.0 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 from the Selected Comparable Company
Analysis.
(d) Based upon trading statistics for comparable companies.Historical financial
information for comparable companies are as of 6/30/00.
(e) Based on PXP 2000 Financial Plan.
(f) Based upon selected transactions since 1997 involving a domestic asset
manager with purchase price greater than $300 million. Includes full change
-of-control premium.
<PAGE>
PROJECT GRISWOLD
Summary of Going Private Premiums Analysis
<TABLE>
<CAPTION>
Premiums Implied Valuation (a)
---------------------------------- -------------------------------
1 Week 4 Weeks 1 Week 4 Weeks
-------------- ------------------ --------------- --------------
<S> <C> <C> <C> <C>
Selected Recent FIG Deals
Met Life/ Conning Corp. $38.9 $52.1 $15.63 $14.73
Hartford Financial/ Hartford Life 40.3 43.3 15.78 13.88
Citigroup/ Travelers 39.5 35.1 15.70 13.08
All Deals Since 1999
Financial Institutions $39.7 $46.3 $15.72 $14.17
All Cash 26.0 40.6 14.17 13.62
All deals since 1992
Financial Institutions $20.0 $21.5 $13.49 $11.77
All Cash 22.1 24.9 13.74 12.09
</TABLE>
(a) Based on median premia of final offer price to the price at the indicated
time prior to announcement. Includes all non-withdrawn transactions with a
value greater than $40 million involving a domestic target where the
acquiror owns at least 40% or 60% prior to acquisition.
<PAGE>
PROJECT GRISWOLD
Discounted Cash Flow Analysis
($ in Millions)
<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) $ 18.44
-------------------------------------------------------------------------
Discount Assumed Terminal Multiple on EBITDA (h)
Rate (i) -------------------------------------------------------
7.0x 8.0x 9.0x 10.0x
-------------------------------------------------------
12.0 % $ 15.29 $17.27 $19.25 $21.23
13.0 14.64 16.54 18.44 20.35
14.0 14.02 15.85 17.67 19.50
------------------------------------------
15.0 13.42 15.18 16.94 18.70
16.0 12.85 14.55 16.24 17.93
</TABLE>
(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 0.0x 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 58.0 million diluted shares (option data as of 6/30/00), using the
treasury method.
(h) Based on current range of LTM EBITDA trading multiples for asset managers
with less than $2 billion in market capitalization.
(i) SSB research uses a range of discount rates of 13% to 15% in its analysis.
<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
---------- ----------------------------- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
06/20/00 Alliance Capital Management Sanford C. Bernstein & Co 85,500 - 62.8 37.2% 80.0% 19.0%
06/20/00 Old Mutual Plc United Asset Management 188,000 25.0 64.8 10.1 88.0 19.0
06/16/00 CDC Asset Mgmt. Nvest, L.P. 134,000 27.6 64.9 7.5 42.0 48.0
06/12/00 Liberty Financial Companies Wanger Asset Mgmt., LP 9,133 91.6 8.4 - 91.7 -
05/15/00 Unicredito Italiano Group Pioneer Group 24,500 95.6 4.4 na 94.2 4.0
01/13/00 Charles Schwab U.S. Trust Corp. 86,000 12.6 19.4 68.0 54.0 46.0
11/01/99 Allianz AG PIMCO Advisors LP 256,153 17.0 83.0 na 33.0 66.0
08/10/98 Northwestern Mutual Life Frank Russell Company 42,000 - 100.0 na 67.0 23.0
11/05/97 PIMCO Advisors L.P. Oppenheimer Capital 61,393 13.0 87.0 na 82.0 13.0
<CAPTION>
In Millions
FV as a FV as a Multiple of: Price as a Multiple of:
---------- ---------------------- -------------------------
Announce Purchase Percent of LTM LTM LTM LTM
Date Money Mkt. Price AUM Revenues EBITDA Pretax Net Inc.
---------- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
06/20/00 1.0% 3,500.0 nd nd 10.5x nd nd
06/20/00 1.0 1,460.0 1.18 2.5x 7.1 13.0x 22.6x
06/16/00 10.0 1,909.0 1.64 3.4 12.3 18.2 na
06/12/00 8.3 388.0 4.21 nd nd nd nd
05/15/00 1.8 1,226.0 5.14 5.7 18.5 26.7 40.3
01/13/00 na 2,700.0 3.14 5.1 18.1 29.8 34.6
11/01/99 1.0 3,220.1 1.85 5.0 15.6 20.5 22.0
08/10/98 10.0 1,200.0 nd nd nd na nd
11/05/97 5.0 792.8 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:
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
<CAPTION>
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
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
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 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
<CAPTION>
--------------------------------------
% Change Initial to Fin
--------------------------------------
Mean Median
--------------------------------------
<S> <C> <C>
One Week Prior
All Transactions 6.0% 0.0%
Financial Institutions 14.1 13.4
All Cash 7.1 0.0
Four Weeks Prior
All Transactions 6.0% 0.0%
Financial Institutions 14.1 13.4
All Cash 7.1 0.0
</TABLE>
<TABLE>
<CAPTION>
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
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
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
</TABLE>
--------------------------------------------------
Financial Institutions One Week $15.72
Four Weeks 14.17
--------------------------------------------------
--------------------------------------------------
All Cash One Week 14.17
Four Weeks 13.62
--------------------------------------------------
N.B. Includes all non-withdrawn transactions with a value greater than $40
million involving a domestic target firm.
<PAGE>
PROJECT GRISWOLD
Going Private Transactions Deal List
<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> <C>
4/25/00 Pending $ 8.00 $ 8.00 - Investor Group MPW Industrial Services Group
4/24/00 Pending 18.75 26.40 40.8% Investor Group Cherry Corp
3/27/00 6/27/00 44.00 50.50 14.8 Hartford Financial Services Hartford Life (ITT Hartford)
3/23/00 Pending 3.40 - - Security Capital Group Inc Homestead Village Inc
3/21/00 4/20/00 41.50 41.95 1.1 Citigroup Inc Travelers Property Casualty
3/17/00 Pending 71.00 - - BP Amoco PLC Vastar Resources Inc
2/22/00 Pending 62.01 62.01 - Global Crossing Ltd IXnet Inc(IPC Information)
2/14/00 Pending 71.50 71.50 - Healtheon/WebMD Inc CareInsite Inc(Synetic Inc)
1/31/00 Pending 15.00 15.00 - Thermo Instrument Systems Inc Thermo Optek Corp
1/31/00 Pending 17.00 17.00 - Thermo Instrument Systems Inc ThermoQuest Corp
1/31/00 Pending 28.00 28.00 - Thermo Instrument Systems Inc Thermo BioAnalysis(Thermo)
1/19/00 4/19/00 10.50 12.50 19.0 Metropolitan Life Insurance Co Conning Corp
1/19/00 Pending 49.00 49.00 - Dexter Corp Life Technologies Inc(Dexter)
1/19/00 2/9/00 23.50 23.50 - Elyo(Suez Lyonnaise des Eaux) Trigen Energy Corp
1/11/00 Pending 21.00 21.00 - Investor Group Hayes Lemmerz International
12/21/99 12/21/99 - - - Guardian Industries Corp OIS Optical Imaging Systems
12/8/99 Pending - - - Heico Companies LLC Robertson-Ceco Corp
12/1/99 Pending 13.25 16.50 24.5 Boise Cascade Corp Boise Cascade Office Products
11/16/99 Pending 6.00 6.00 - Thermo Electron Corp Thermo TerraTech Inc(Thermo)
11/12/99 Pending 17.00 17.00 - Cordant Technologies Inc Howmet International Inc
11/5/99 11/5/99 36.50 36.50 - Discount Investment Corp (IDB) PEC Israel Economic Corp
9/20/99 Pending 22.00 22.00 - Elyo(Suez Lyonnaise des Eaux) Trigen Energy Corp
9/3/99 Pending 10.30 10.30 - Investor Group Digital Link Corp
7/29/99 Pending 8.75 8.75 - Cactus Acquisitions Inc Western Beef Inc
6/8/99 7/28/99 37.00 37.00 - Merck E(Merck AG) VWR Scientific Products Corp
5/7/99 7/30/99 35.62 35.62 - McDermott International Inc J Ray McDermott SA
4/12/99 6/30/99 8.00 10.00 25.0 Investor Group Meadowcraft Inc
4/1/99 8/15/99 2.00 2.90 45.0 Vivendi SA Aqua Alliance Inc
3/24/99 9/21/99 25.00 28.00 12.0 Warburg, Pincus Ventures Inc Knoll Inc(Warburg, Pincus)
3/21/99 7/1/99 9.00 9.75 8.3 Viacom Inc(Natl Amusements) Spelling Entertainment Group
2/8/99 2/8/99 17.00 17.00 - Cordant Technologies Inc Howmet International Inc
1/6/99 3/1/99 14.00 14.00 - Marriott International Inc ExecuStay Corp
12/3/98 4/8/99 9.75 11.00 12.8 Fairchild Corp Banner Aerospace Inc
12/2/98 4/23/99 20.00 24.50 22.5 Pinault-Printemps Redoute Brylane Inc
11/12/98 5/14/99 8.00 8.00 - UtiliCorp United Inc Aquila Gas Pipeline Corp
10/27/98 12/14/98 29.00 33.25 14.7 Allmerica Financial Corp Citizens Corp(Hanover Ins Co)
10/22/98 4/29/99 15.50 20.50 32.3 Bank of America National Trust BA Merchant Svcs(BankAmerica)
<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> <C>
4/25/00 Pending $ 122.4 - 100.0 58.0 16.4 52.4 -
4/24/00 Pending 144.5 - 100.0 109.1 70.3 51.1 48.9
3/27/00 6/27/00 1,324.6 - 100.0 40.3 43.3 80.4 18.3
3/23/00 Pending 130.1 - 100.0 29.5 64.8 72.3 -
3/21/00 4/20/00 2,449.3 - 100.0 39.5 35.1 85.0 15.0
3/17/00 Pending 35.5 - 100.0 15.4 44.9 80.1 -
2/22/00 Pending 876.9 100.0 - 22.8 25.9 72.4 -
2/14/00 Pending 1,883.8 100.0 0.0 (0.7) (3.4) 64.9 -
1/31/00 Pending 51.8 - 100.0 (5.1) 41.2 90.0 -
1/31/00 Pending 96.9 - 100.0 47.0 61.9 85.4 -
1/31/00 Pending 167.9 - 100.0 55.6 53.4 70.1 -
1/19/00 4/19/00 84.6 - 100.0 38.9 52.1 56.6 -
1/19/00 Pending 356.9 - 100.0 - - 70.0 -
1/19/00 2/9/00 159.2 - 100.0 42.4 31.9 49.6 -
1/11/00 Pending 165.2 - 100.0 23.5 38.8 72.0 -
12/21/99 12/21/99 40.2 - 100.0 - - 79.6 -
12/8/99 Pending 49.6 - 100.0 - - 69.2 -
12/1/99 Pending 205.3 - 100.0 55.3 60.0 80.5 -
11/16/99 Pending 80.7 100.0 0.0 (9.4) 11.6 53.7 -
11/12/99 Pending 261.4 - 100.0 18.8 38.1 84.6 -
11/5/99 11/5/99 205.8 - 100.0 1.0 2.8 69.3 -
9/20/99 Pending 132.7 - 100.0 20.5 18.1 49.6 -
9/3/99 Pending 50.7 - 100.0 23.0 32.9 42.4 -
7/29/99 Pending 89.2 - 100.0 42.9 38.6 71.4 -
6/8/99 7/28/99 581.1 - 100.0 30.7 46.5 49.9 50.1
5/7/99 7/30/99 514.5 - 100.0 13.1 19.2 63.0 37.0
4/12/99 6/30/99 53.2 - 100.0 63.3 77.8 73.0 27.0
4/1/99 8/15/99 117.1 - 100.0 19.0 101.7 77.8 22.2
3/24/99 9/21/99 490.8 - 100.0 51.9 46.4 58.2 -
3/21/99 7/1/99 191.6 - 100.0 43.1 54.5 80.9 19.1
2/8/99 2/8/99 385.1 - 100.0 11.5 13.3 62.0 -
1/6/99 3/1/99 64.8 - 100.0 7.2 9.8 42.8 55.0
12/3/98 4/8/99 82.4 100.0 - 41.9 40.8 69.2 -
12/2/98 4/23/99 230.6 - 100.0 88.5 44.1 49.0 49.2
11/12/98 5/14/99 43.2 - 100.0 17.4 68.4 81.6 18.4
10/27/98 12/14/98 212.4 - 100.0 17.2 20.9 81.8 18.2
10/22/98 4/29/99 339.4 - 100.0 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> <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
----------------------
Date Initial Final From Initial
-------------------------
Announced Completed Price Price Offer Acquiror Name Target Name
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
10/10/96 11/27/96 $ 10.00 $ 10.00 - % Renco Group Inc WCI Steel Inc
9/9/96 9/23/96 - 11.05 - Highwoods Property Crocker Realty Trust Inc
8/8/96 9/17/96 41.00 41.00 - Chemed Corp Roto-Rooter Inc
7/31/96 11/13/96 8.00 8.00 - Monsanto Co Calgene Inc (Monsanto Co)
5/27/96 2/16/97 17.00 19.50 - Sandoz Ltd (Novartis) SyStemix Inc
5/10/96 12/11/96 23.52 23.52 34.0 PXRE Corp Transnational Re Corp
5/7/96 7/3/96 17.50 18.50 5.7 Orion Capital Corp Guaranty National Corp
4/8/96 8/16/96 55.00 55.00 - AirTouch Communications Cellular Communications Inc
3/29/96 4/26/96 50.00 50.00 - Equity Holdings Ltd Great American Mgmt & Invt Inc
1/26/96 5/31/96 25.80 25.80 - NationsBank Corp Charter Bancshares Inc
10/18/95 11/28/95 11.75 11.75 - Rhone-Poulenc Rover Inc Applied Immune Sciences Inc
9/26/95 12/21/95 14.00 15.25 8.9 SCOR SA SCOR SA Corp
8/25/95 1/2/96 70.00 70.00 - Berkshire Hathaway Inc GEICO Corp
7/14/95 12/11/95 18.00 20.00 11.1 COBE Laboratories (Gambro AB) REN Corp-USA
5/19/95 12/6/95 36.50 40.50 11.0 BICSA Bic Corp
4/7/95 10/3/95 127.50 129.90 1.9 McCaw Cellular Commun (AT&T) LIN Bdcstg
4/5/95 8/2/95 26.25 32.00 21.9 Club Mediterranee SA Club Med Inc
2/27/95 8/31/95 22.50 23.25 3.3 Conseco CCP Insurance Inc
2/27/95 6/22/95 22.00 20.63 - Conseco Bankers Life Holding Corp
2/7/95 7/12/95 14.00 16.35 16.8 WMX Technologies Inc Rust International Inc
1/31/95 2/1/95 - 69.54 - Sandoz AG SyStemix Inc
1/18/95 8/9/95 26.00 29.00 11.5 Arcadian Crop Arcadian Partners LP
12/28/94 4/28/95 20.00 20.00 - Fleet Financial Group Inc Fleet Mortgage Group Inc
11/2/94 9/27/95 28.00 30.00 7.1 PacifiCorp Pacific Telecom
9/8/94 5/12/95 22.50 25.50 13.3 GTE Corp Contel Cellular Inc (Contel)
8/24/94 3/24/95 14.00 15.75 12.5 Dole Food Co Inc Castle & Cooke Homes Inc
6/6/94 12/29/94 18.38 18.38 - Ogden Corp Ogden Projects Inc
4/26/94 7/26/94 4.48 4.48 - Burlington Resources Inc Diamond ShamrocO Offshore
2/17/94 9/15/94 84.75 84.75 - EW Scripps (Edward Scripps Tr) Scripps Howard Broadcasting Co
1/7/94 2/23/94 7.65 7.65 - Holderbank Financiere Glarus Holnam Inc (Holdernam Inc)
10/22/93 10/22/93 14.70 14.70 - Manville Corp Riverwood International Corp
9/20/93 12/10/93 48.00 46.00 (4.2) Valley Fashions Corp West Point-Pepperell Inc
9/13/93 10/5/93 13.00 7.56 (41.8) Blockbuster Entertainment Corp Spelling Entertainment Inc
3/22/93 5/7/93 25.00 30.00 20.0 New Marvel Holdings Inc Marvel Entertainment Group Inc
11/13/92 5/7/93 17.88 18.75 4.9 Rust International Inc Brand Cas Inc
9/9/92 2/26/93 21.04 25.50 21.2 American Maize-Products Co American Fructose Corp
8/19/92 11/19/92 13.50 13.50 - Investor Group FoxMeyer Corp (Natl Intergroup)
8/17/92 12/31/92 14.72 25.78 75.1 Leucadia National Corp PHLCORP Inc
3/2/92 7/14/92 16.50 19.00 15.2 WR Grace & Co Grace Energy Corp
2/6/92 7/30/92 6.00 7.25 20.8 Charter Co (American Financial) Spelling Entertainment Inc
<CAPTION>
Deal Offer Premium Held at
----------------
Date Value % % 1 Week 4 Week Ann Peercent
-------------------------
Announced Completed ($M) Stock Cash Prior Prior Date Sought
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10/10/96 11/27/96 $ 56.5 - 100.0% 29.0% 77.8% 84.5% 15.5%
9/9/96 9/23/96 73.7 - 100.0 0.5 0.5 77.1 22.9
8/8/96 9/17/96 88.3 - 100.0 20.6 19.7 54.9 45.1
7/31/96 11/13/96 50.0 - 100.0 80.3 39.1 49.0 4.7
5/27/96 2/16/97 76.2 - 100.0 69.5 59.2 73.0 27.0
5/10/96 12/11/96 130.5 100.0% - 16.5 9.9 22.3 77.7
5/7/96 7/3/96 85.1 - 100.0 15.6 22.3 49.5 30.7
4/8/96 8/16/96 1,606.5 - 100.0 7.8 6.3 40.0 60.0
3/29/96 4/26/96 55.6 - 100.0 4.2 3.6 87.9 12.1
1/26/96 5/31/96 94.7 100.0 - 15.9 22.8 42.0 58.0
10/18/95 11/28/95 84.6 - 100.0 51.6 38.2 46.0 54.0
9/26/95 12/21/95 55.4 - 100.0 35.6 38.6 80.0 20.0
8/25/95 1/2/96 2,347.0 - 100.0 23.1 25.3 52.4 47.6
7/14/95 12/11/95 177.7 - 100.0 20.3 26.0 53.0 47.0
5/19/95 12/6/95 212.6 - 100.0 12.5 28.6 78.0 22.0
4/7/95 10/3/95 3,323.4 - 100.0 6.7 1.3 52.0 48.0
4/5/95 8/2/95 153.4 - 100.0 39.9 44.6 67.0 33.0
2/27/95 8/31/95 273.7 - 100.0 30.1 23.2 48.1 51.9
2/27/95 6/22/95 458.5 - 100.0 21.4 6.0 63.2 36.8
2/7/95 7/12/95 50.5 - 100.0 39.1 39.1 96.3 3.7
1/31/95 2/1/95 80.0 - 100.0 315.2 303.1 60.0 11.6
1/18/95 8/9/95 428.4 - 50.0 21.5 26.1 45.0 55.0
12/28/94 4/28/95 188.1 - 100.0 18.5 18.5 81.0 19.0
11/2/94 9/27/95 159.0 - 100.0 23.7 23.7 86.6 13.4
9/8/94 5/12/95 254.3 - 100.0 37.8 36.0 90.0 10.0
8/24/94 3/24/95 81.5 - 100.0 41.6 55.6 81.7 18.3
6/6/94 12/29/94 110.3 100.0 - 17.6 20.5 84.2 15.8
4/26/94 7/26/94 42.6 - 100.0 (0.4) 5.4 87.1 12.9
2/17/94 9/15/94 115.9 100.0 - 13.0 13.0 86.0 14.0
1/7/94 2/23/94 51.7 - 100.0 15.5 7.4 95.0 5.0
10/22/93 10/22/93 50.0 - 100.0 12.0 8.9 80.5 1.0
9/20/93 12/10/93 66.3 - 100.0 (19.8) (19.8) 95.1 4.9
9/13/93 10/5/93 101.3 100.0 - (5.5) 0.8 50.3 20.9
3/22/93 5/7/93 300.0 - 100.0 42.9 58.9 59.6 20.7
11/13/92 5/7/93 185.0 30.0 70.0 13.6 4.9 55.8 44.2
9/9/92 2/26/93 130.3 100.0 - 23.6 29.1 42.7 57.3
8/19/92 11/19/92 44.6 - 100.0 18.7 1.9 66.5 10.4
8/17/92 12/31/92 139.9 100.0 - 15.2 28.9 63.1 36.9
3/2/92 7/14/92 77.3 - 100.0 21.6 7.8 83.4 16.6
2/6/92 7/30/92 43.0 - - 45.0 45.0 82.3 17.7
</TABLE>
Source: Thompson Financial Securities Data.
