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Insurance giant Prudential Financial, Inc., has decided it shouldn’t be in the business of managing stockbrokers. The Newark-based company announced on February 19 that it would combine its brokerage unit, Prudential Securities Incorporated, with that of Wachovia Corporation. The Charlotte, North Carolina�based bank will take a 62 percent stake in the joint venture, while Prudential Financial will retain a 38 percent stake. Those percentages accord roughly with the number of brokers each company will contribute to the joint venture. Wachovia now has 8,100 brokers, while Prudential has 4,400. The total number in the new unit is likely to be pruned after the deal closes. Wachovia will appoint three members to the new venture’s board of managers; Prudential Financial, two. After the deal closes, the combined Wachovia Securities, Inc., will be headquartered in Richmond. The companies hope to gain after-tax savings of $220 million on the deal by 2005. For venture partner Wachovia Corporation (Charlotte, North Carolina) In-house: General counsel Mark Treanor, deputy general counsel T. Hal Clarke, Jr., and general counsel�retail brokerage Stephen Gannon. Simpson Thacher & Bartlett (New York): Corporate: Maripat Alpuche, Lee Meyerson, senior counsel Brynn Peltz, and associates David Butow, Christopher Lee, Peter Martelli, and Karrie Woodcock. Tax: Steven Todrys and associate Jonathan Cantor. Employee benefits: Kenneth Edgar, Jr., and associate Andrea Wahlquist. Meyerson represented Wachovia in its 2001 merger with First Union Corp. Morgan, Lewis & Bockius (Philadelphia): The firm declined to identify the lawyers who worked on the deal. For venture partner Prudential Financial, Inc. (Newark ) In-house: Senior vice president and general counsel John Liftin, vice president and corporate counsel�M&A Jeffrey Isaacs, and vice president and corporate counsel�technology Roy Shulman. Debevoise & Plimpton (New York): Corporate: Andrew Bab, Meredith Brown, Sarah Fitts, Stephen Friedman, John Vasily, and associates Shahm Munib Al-Wir, Monica Arora, Laura Beny, Jessica Berets, Justin Chan, Rachel Coleman, Shannon Conaty, Lisa Gan, Carlos Gonzalez, Brian Gregory, Kirk Lipsey, Su Lian Lu, David Lurvey, Njeri Nginyo, Maya Singer, Freddy Taveras, Nicole Valentine, Claude Vuillieme, and Paula Zabalegui. Regulatory: Kenneth Berman, Molly Boast, Marcia MacHarg, and associates Stephen Baum, Bruce Schindler, and Jo Anne Tsung. Intellectual property: counsel Judith Church and associates Dagmar Schwartz and Benjamin Shin. Tax: Seth Rosen and associate David Stein. Litigation: Anne Cohen and associates John Driscoll III and Dennis Hranitzky. Real estate: Steven Alden and associate Chong Alexandra Friedman. Employee benefits: David Mason and associates D. Renee Applegate, Jamin Koslowe, and Sara Van Dyke. (Arora, Conaty, and Berman are in the firm’s D.C. office; MacHarg is in Frankfurt.) Debevoise regularly represents Prudential on M&A transactions, and has recently done some international work for the company. The firm represented Prudential in its 2001 acquisition of Kyoei Life Insurance Co. Ltd., a failed Japanese insurer, for $3.4 billion. Wilmer, Cutler & Pickering (Washington, D.C.): Brandon Becker, Mark Shelton, and counsel Bruce Newman. (Newman is in the firm’s New York office.) For target Prudential securities Incorporated (New York) In-house: General counsel Howard Steinberg and senior vice president and deputy general counsel Brian Morris. Outlook The deal is expected to close in the third quarter, pending approvals from various state and federal regulatory agencies, the New York Stock Exchange, and the National Association of Securities Dealers.

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