CHICAGO - In a move that will bolster its retail distribution capabilities in Illinois, Minneapolis-based Dain Rauscher Corp. will acquire ABN AMRO Inc.'s Chicago-based private client brokerage office, the firm announced on Monday.
A total of 41 employees, including 24 registered brokers, will join Dain's Chicago office. The addition will double the staff size of Dain's Chicago office. No employees of the private client brokerage group will lose their jobs, according to a spokesman for Dain.
"We've wanted to grow our Chicago presence for some time, and this combination will give us a tremendous boost in our ability to serve the Chicago area," Charley Grose, Dain's Midwest regional director, said in a statement.
Market players said the acquisition will definitely give a boost to Dain's attempts to manage deals in the Chicago area and statewide. "It really enhances their ability to distribute bonds in the state, which helps them compete for local business. The ability to distribute bonds on a retail level is a distinguishing attribute for some issuers," said one market participant.
James Pass is the manager of Dain's Chicago public finance office. He left Salomon Smith Barney earlier this year to join Dain.
Peter Wendell, manager of ABN AMRO's private client group, will serve as managing director of the branch office in Chicago and will report to Jim Chapman, Illinois district director for Dain.
Market sources said they believe ABN AMRO was seeking to sell the group because its efforts are duplicated by other groups within the overall company.
"We believe this deal is good for both our employees and their clients as Dain Rauscher offers a broad platform and extremely competitive tool set within the securities industry," said Wilbert Thiel, president of ABN AMRO, in a statement.
Dain recently announced that it was being acquired by the Royal Bank of Canada.
The deal still faces regulatory approval, but is expected to close by the end of the year. The change is not expected to affect Dain's public finance group.
