In Brief: Bank of N.Y. to Buy Trust Business in U.K.

Bank of New York Co. has agreed to buy Bank of Montreal's corporate trust business in the United Kingdom.

Terms of the deal, which is expected to close in the second quarter, were not disclosed. Bank of New York has made 20 acquisitions in the corporate trust sector in the past five years, in a program to build volume in this business. Corporate trust covers a broad range of services such as trustee, paying agency, registrar, and securitization trusteeship for issuers and holders of corporate and public sector bonds.

Bank of New York has also been expanding trust and processing services to international issuers, as well as its activities in global custody and American depositary receipts.

Thomas A. Renyi, chairman and chief executive officer, said the deal was "an important component in our plan to aggressively build our international corporate trust business."

Bank of Montreal would transfer about 100 bond agency relationships for international corporations to Bank of New York. The bank said it would merge Bank of Montreal's business into its London corporate trust operation.

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