Manulife in huge merger with John Hancock

[dArKeR]

Manulife Financial Corp. says it is merging with Boston-based John Hancock Financial Services Inc. in a massive deal that creates a company valued at $34.7-billion.

The stock-swap merger is based on closing stock prices on Sept. 24.

Manulife's CEO Dominic D'Alessandro will be president and CEO of the new company, which will be based in Toronto.

Under the merger deal, John Hancock shareholders will get 1.1853 Manulife shares for each John Hancock share, representing a price of $37.60 (U.S.) for a 18.5 per cent premium based on the closing price on Sept. 24.

Manulife says it will invest up to $3-billion (Canadian) in a share buyback.

"We see this as a unique strategic opportunity to combine two exceptionally strong companies into a single, integrated, global market leader whose scale and capital base will drive even greater growth and shareholder value," said Manulife's Mr. D'Alessandro.

http://theglobeandmail.com/servlet/story/RTGAM.20030928.wbmanu0928/BNStory/Business/

[papau]

1. On today's conf call -Al said no major layoffs - just enough to get $270 M

of savings.

And he has a 18 month guar contract as pres of the JH post the merger.

And he said nothing about the 5 person 100 million "sorry" package that he had JH Board vote to himself and 4 others - which triggers not on severance -

but on a change in management.

So let the layoffs begin!