Dime: Salomon Violated Confidentiality Pact
NEW YORK - Dime Bancorp, still trying to fend off a $1.9 billion hostile takeover bid by rival North Fork Bancorp, filed suit late Wednesday against Salomon Smith Barney, which has lately been acting as adviser to North Fork.Dime says Salomon, now a unit of Citigroup Inc., is in violation of a confidentiality agreement it signed when it was hired in April 1997 to advise Dime on its acquisition of North American Mortgage Co. That was months before Salomon Brothers was acquired by Travelers Group and merged into Smith Barney. Travelers and Citicorp merged in late 1998 to form Citigroup.
In a press statement, Salomon accused Dime of "intentionally misrepresenting" the agreement, saying it only prohibits the use of confidential information about Dime. "We are confident that we have completely respected our client agreements," Salomon said.
Some of Dime's biggest shareholders have said in recent weeks that the tactics will not dissuade them from voting against the pending deal between Dime and Mahwah, N.J.-based Hudson United Bancorp. Shareholder votes on Dime-Hudson have been postponed twice.
Morgan Taking 4% Stake in Sony Web Bank
TOKYO - J.P. Morgan & Co. will invest $14.2 million for a 4% stake in a new Japan-based Internet banking venture by Sony Corp.The project, announced in Japan on Thursday, is the latest example of how Morgan - a 150-year-old institution that caters to huge corporations and superrich individuals - has been trying to forge links to the New Economy. This month Morgan launched an Internet bank, Morgan Online, that is designed to bring full-service private banking and brokerage to a broader audience of potential customers.
Sony's online bank will take deposits, make loans, and transfer funds. The unit will have an initial capitalization of $357 million, with Sony holding 80% of the equity. Another banking partner, Sakura Bank in Japan, will take 16% stake and lend Sony its expertise on and access to a network of automated teller machines. Morgan will contribute personal financial advice services currently available on Morgan Online.
- Compiled by Liz Moyer
