AT THE BELL

Babson getting new president

Peter C. Thompson is stepping down as president of money management firm David L. Babson & Co. at the end of the month and retiring effective June 30. The most likely successor to Mr. Thompson is James McAllen, the firm’s chief investment officer, according to sources involved in the transition. Mr. Thompson will assume the role of chairman, although he will not be involved in the firm’s day-to-day operations. David L. Babson, which is based in Cambridge, Mass., and has nearly $20 billion in assets under management, is owned by Massachusetts Mutual Life Insurance Co.

IPO may be next Nasdaq goal

If the National Association of Securities Dealers completes its takeover of the American Stock Exchange, its next move might be even more precedent-setting: an initial public offering, reports sister publication Crain’s New York Business. Sources within the NASD and industry experts say the group may take its Nasdaq Stock Market public in order to pay off Amex seat-holders and raise capital to further challenge the New York Stock Exchange. As part of the proposed merger, the New-York based American exchange would become a subsidiary of a new NASD Market Holding Company. Owners of 864 Amex seats would be offered stock or options in the holding company in exchange for their seats — one of which recently sold for $480,000. The merger requires two-thirds approval of Amex seat-holders.

Abbondanza for Putnam

Putnam Investments plans to increase its 20% stake in Italy’s Cisalpina Gestioni SpA, the fund management arm of Banca Popolare di Brescia, to 50% by September. The Boston mutual fund company won’t comment, but sources say, “We’re being coy about announcing the deal, but it’s a fait accompli.” Putnam purchased a 20% stake in Cisalpina Gestioni 2? years ago. Together, they market 14 funds, with $4 billion, under the Cisalpina Putnam name.

Not a total Waste for funds

The travails this decade of Waste Management — by far the largest environmental company with a
market capitalization of $13.9 billion — have made the whole industry smell bad. The result: the number of funds specializing in the sector has shrunk by more than half, to three. Those three — Fidelity Select Environmental, Invesco Strategic Environmental Services and Alliance Global Environment funds — each got a major boost from the news last week that the company is merging with USA Waste Services Inc. Waste’s stock zoomed 26% to 30.75 while Houston-based USA Waste increased 16% to 44.88.

Even happier was Rex Wardlaw, manager of Wells Capital Management’s $350 million Stagecoach Equity Value Fund, who put 2% of its assets in Waste six months ago after turnaround specialist Steve Miller took over as interim CEO. “We buy with a two- to three-year horizon most of the time,” Mr. Wardlaw says. “This was frosting on the cake.”

But the candles may burn out quickly.

Morningstar Inc. analyst Jon Hale says continued landfill overcapacity, among other factors, is likely to keep the industry from rebounding significantly.

Open and shut for Neuberger

Neuberger & Berman has closed its first fund even while opening another. The firm closed the $2 billion small-cap Genesis Fund to new investors, and launched the High Yield Bond Fund. The no-load fund has a $2,000 minimum investment; $250 for IRAs.

In other news, the firm has hired Melody Prenner Sarnell from New York’s John A. Levin & Co. Inc. as portfolio manager for its value equity group.

Etc.: Future of futures

Chicago’s futures exchanges are preparing to merge their back-rooms. After years of prodding from their biggest customers, the Chicago Board of Trade and the Chicago Mercantile Exchange are expected to agree on common clearing at the Futures Industry Association convention this week in Boca Raton, Fla., sister publication Crain’s Chicago Business reports. Is a merger next?…Hot as barbecue sauce, shares of H.D. Vest Inc. shot up 14.89% to 6.75 Thursday. The Irving, Tex.-based accounting firm, a pioneer in turning CPAs into
financial planners and considered a natural candidate for acquirers (InvestmentNews, Feb. 23), declines to comment…Liberty Financial Cos. is seen as leading the race to buy the Kaufmann Fund, Bloomberg News reports…The Dow Jones Industrial Average closed Friday at 8602.52, but up 93.67 for the week.

Correction

A Page 1 story in the March 2 issue incorrectly stated that Jack White & Co. has a CPA referral program. Although certified public accountants do trade through Jack White, the company does not have a referral service.