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Strategies & Market Trends : Joe Copia's daytrades/investments and thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Joe Copia who wrote (16506)	6/11/1999 12:57:00 PM
From: RCJIII	Read Replies (1) \| Respond to of 25711

JMCGC to merge with market maker, news just out, stock running- (PR NEWSWIRE) JMC Group, Inc. and Fechtor, Detwiler & Co., Inc. Sign Defin JMC Group, Inc. and Fechtor, Detwiler & Co., Inc. Sign Definitive Agreement for Merger SAN DIEGO and BOSTON, June 11 /PRNewswire/ -- JMC Group, Inc. ("JMCG") (Nasdaq: JMCGC; PCX: JMC) and privately held Fechtor, Detwiler & Co., Inc. ("FEDE") of Boston, Massachusetts, today announced the execution of a definitive agreement for a merger of the two companies. This follows extensive due diligence of both companies and the rendering of a satisfactory fairness opinion by J.C. Bradford & Co. The merger is still subject to the approval of JMCG stockholders at the Company's annual meeting, now expected to occur in August. The merger is expected to be a tax free reorganization and is intended to create an entity under the name Fechtor, Detwiler, Mitchell & Co. that will combine the financial services and management skills of both companies. Under the terms of the proposed merger, FEDE stockholders will receive 6,600,000 newly issued shares of JMCG. Following the transaction, current JMCG stockholders will own approximately 48% of the newly merged company. James Mitchell, chairman and CEO of JMCG said a great deal of work has been accomplished to reach the execution of the definitive agreement. He said, "As a result of this process to validate the merits of combining the two companies, we are more optimistic than ever regarding the transaction. We firmly believe the merger provides an excellent opportunity to build value for the future." Richard Fechtor, CEO of FEDE, views this as a way to strengthen his company's position and to expand opportunities for entry into new markets. "Since the inception of our company in 1962, we have continued to build a comprehensive array of products and services for the benefit of our customers and have been profitable for over 36 straight years." Mr. Fechtor added, "We have implemented technology to increase performance, reduce costs and add flexibility to meet investors' needs. Departments dedicated to research, trading and self-clearing provide an efficient and integrated process to facilitate trades. Now we will have the platform which we believe can provide opportunities to accelerate our growth for the future through both internal and external means." The merged company will be headquartered in Boston with operations in San Diego being expanded to better serve California and the West Coast markets. Richard Fechtor will serve as CEO with James Mitchell as chairman and president. Sheldon Fechtor will serve as CFO for a transitional period and Ned Hughes will serve as Chief Operating Officer. SOURCE JMC Group, Inc. -0- 06/11/99 /CONTACT: James K. Mitchell, Chairman and CEO, 619-450-0055 Ext. 114, or Fechtor, Detwiler & Co., Inc., Richard Fechtor, CEO, 617-747-0159, both of JMC Group, Inc./