CHICAGO - Dougherty Dawkins Inc. has signed a letter of intent to merge with Summit Investment Corp., employees with the Minneapolis firms said yesterday.
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Dougherty Dawkins is a leading bond underwriter in Minnesota. Summit has a small municipals trading presence, but its chief appeal to Dougherty Dawkins is as an equities brokerage and emerging investment banking shop.
In a letter signed last week, the two companies said they will form a merger of equals, which means no cash will exchange hands.
The combined companies will have about 150 employees, including 15 public finance professionals. Memos were sent out to employees of both companies last week.
John Taft, now chairman of mutual funds firm Voyageur Companies, will become president of the newly merged firm and is moving from Voyageur's office to Dougherty Dawkins. He remains chairman of Voyageur, which is owned by parent company Dougherty Financial Group.
Neither Dougherty Dawkins chairman Mike Dougherty, chief executive Gerald Kraut, nor Summit president James Spinner returned telephone calls yesterday. Taft declined to comment.
Dougherty Dawkins was senior manager for 65 deals worth $539 million last year, ranking the firm 48th nationally, and was co-manager of 91 deals worth $2.5 billion, placing it 72d. Summit has not underwritten a deal since 1993, according to Securities Data Co., when it co-managed a $4 million school bond deal.
Dougherty has 12 municipal bankers in Minneapolis and Chicago. Summit doesn't have any public finance bankers, but does list two traders in the latest Bond Buyer's Municipal Marketplace guide.
Taft reportedly was to hold a company-wide conference call today to give employees details about the merger, such as the firm's new name, which has yet to be released.
The deal still is still subject to approvals from the National Association of Securities Dealers and state regulators.
It marks the second change at Dougherty's parent company this year. In January, Voyageur sold its retail mutual fund business to Indiana-based Lincoln National Corp.
