UK, Nov. 7, 2000 (PRIMEZONE) -- Old Mutual Plc: (OML.LN) Following a strategic review by Old Mutual plc of Gerrard & King Limited, (one of the Gerrard Group businesses it acquired in March 2000) Old Mutual has decided to merge the domestic equity and gilt stock borrowing and lending operations of Gerrard & King with the equivalent international businesses within GNI. This will create an expanding centralized collateral management operation, which will be well placed to respond to changes in the needs of its counter-parties and to developments in the market place. Old Mutual has identified considerable opportunities to develop GNI's service and product range to its global customer base.
Gerrard & King will, however, be withdrawing from its other money market and banking operations, and over the next few weeks will be carrying out an orderly run down of these business areas. Gerrard & King expects to return its banking license early in the New Year.
The Bank of England and the FSA have been kept fully informed of the plans for a realignment of Gerrard & King's businesses and it is expected that the changes will be largely completed by the turn of the year. Old Mutual plc has undertaken to provide Gerrard & King with all necessary financial resources to facilitate fully this process.
Gerrard & King continues to trade profitably and Old Mutual's decision is based solely on a close examination of the future returns likely to be available from this specialized banking business.
There are expected to be a number of redundancies from among Gerrard & Kings staff of 53 but where possible staff will be re-deployed in the newly merged collateral management operation in GNI.