AT THE BELL

M&A wave builds momentum

The volume of announced merger and acquisition deals reached $592.2 billion for the second quarter – more than four times the volume announced in the same period last year. That brings the total value of U.S. announced transactions to $772.5 billion, a 171% increase over last year’s first half, according to Los Angeles-based investment bank Houlihan Lokey Howard & Zukin’s Mergerstat. Financial services deals accounted for $292.4 billion, or 38%, of announced transactions in the first half.

Strategic shift for Duff

Morgan Stanley Dean Witter & Co. is ratcheting up efforts to expand its international money management operations. Philip Duff, 41, has been named to lead international strategic initiatives for the New York investment bank’s institutional asset management group. He had been president and chief executive of mutual fund manager Van Kampen Investments Inc. since last year, following Morgan Stanley Group’s merger with Dean Witter Discover & Co. Mr. Duff helped oversee the purchases of Van Kampen American Capital Inc. and Philadelphia money manager Miller Anderson & Sherrerd. Richard F. Powers, 52, an executive vice president and director of marketing for Morgan Stanley Dean Witter’s individual securities division, has succeeded Mr. Duff.

Hancock drops a fallen star

John Hancock Advisers Inc. of Boston has replaced veteran stock picker Michael DiCarlo after two years of poor performance by the $1.5 billion Special Equities Fund. The new portfolio manager is Laura Allen, who joined Hancock in March from Wellington Management Co. Mr. DiCarlo managed Special Equities for 10 years and gained prominence in 1991 when it posted an astounding 84.91% return. Special Equities returned a dismal 1% in the two years ended June 30. Mr. DiCarlo left Hancock in 1996 to operate a hedge fund firm, DFS Advisors, but he signed a contract through 2001 to remain subadviser of Special Equities.

Change for agents

There’s one less Washington association representing the insurance industry. The National Association of Insurance Brokers merged July 1 with the Council of Insurance Agents and Brokers, whose name survives. The council represents large commercial agents and brokers, averaging about $8 million in revenues. The combined entity has 255 member firms. The council’s Ken Crerar continues as president of the merged association, which has retained two of the smaller group’s six employees.

‘Stars’ hitch fund wagons

The $7.2 billion merger of Midwestern banks Firstar Corp. and Star Banc Corp., announced last week, will create a combined mutual fund operation with more than $8 billion under management. The 18 Firstar Funds have about $5.6 billion under management, while the 13 Star Funds had more than $2 billion as of the end of last year. In addition, Firstar boasts a brokerage affiliate with about 80 reps.

Boston Partners goes micro

Boston Partners Asset Management, which runs more than $16 billion, plans to launch a mutual fund aimed at very small companies this week. The Boston Partners Micro-Cap Value Fund will be managed

by David Dabora, assistant portfolio manager for Boston Partners Premium Equity product for

institutions.

Etc.: Lip service from Lipper

A spokeswoman for Lipper Analytical Services, a mutual fund research firm in New York, called newspaper reports the company was for sale “rumors” that she would not comment on…Metropolitan Life Insurance Co. said it plans to acquire 25% of the asset management business of Spain’s Banco Santander NA for an undisclosed amount…John Kowalik joined OppenheimerFunds’ fixed-income department last week from Prudential Investments, where he was a managing director and senior portfolio manager in the global fixed-income group. Mr. Kowalik will serve as a co-manager for the Oppenheimer Bond Fund and help manage the bond fund subaccount of Oppenheimer’s Life Trust variable annuity.