Short Takes: Wheat First to Cut 27 Jobs in Wrap Business

Wheat First Butcher Singer Inc., Richmond, Va., announced it plans to eliminate 27 back-office jobs in its mutual fund wrap account business.

The investment banking and brokerage firm, which is to merge this quarter with First Union Corp., said it plans to farm out its wrap account operations to another company.

The affected employees are being invited to apply for 80 open positions elsewhere in the company, a Wheat First spokesman said Wednesday.

Wheat First, which employs about 3,000 people, "will remain autonomous" after its merger with Charlotte, N.C.-based First Union, he said. The stock transaction, announced July 21 and valued at about $3.25 billion, is expected to close soon after a vote by Wheat First shareholders on Jan. 23.

Zurich Group Takes OverScudder, Stevens & Clark

Switzerland-based Zurich Group said Dec. 31 it completed its purchase of a majority stake in Scudder, Stevens & Clark Inc. and combined the mutual fund company with its Zurich Kemper Investments unit.

The merged companies, christened Scudder Kemper Investments Inc., manage more than $200 billion of assets. Zurich now owns 69.5% of the firm, with the balance owned by senior employees. The deal was valued at about $2 billion.

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