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Fund Holders Score in Bank Deal

Allison Bisbey Colter

Bank of New York's(BK) planned merger with Mellon Financial (MEL) has Capital Research and Management smiling all the way to the bank.

The sponsor of the American Funds family collectively holds 5.347% of Bank of New York and 3.889% of Mellon, according to data from TheStreet.com Ratings.

(AWSHX)American Funds Washington Mutual Investors Fund is the biggest individual fund holder of Bank of New York, with 19.77 million shares, followed by (AGTHX)American Funds Growth Fund of America with 9.19 million shares and (AMRMX)American Funds American Mutual Fund with 3.25 million shares.

Growth Fund of American also has 8.48 million shares of Mellon, while American Funds Mutual Fund has 1.8 million shares of the Pittsburgh bank, and (ANCFX)American Funds Fundamental Investors has 1.0 million shares.

Under the terms of the deal, Bank of New York shareholders will receive 0.9434 shares in the new company, and Mellon shareholders will receive one share in the new company.

The combined bank will have $1.1 trillion in assets under management and $16.6 trillion in assets under custody.

The companies said they plan a $1.3 billion restructuring that will cut 3,900 jobs over three years "through normal attrition wherever possible." The companies now employ 40,000. The cuts will reduce pretax costs by $700 million annually.

News of the deal sent shares of Bank of New York up $4.27, or 12.03%, to $39.75 Monday, while Mellon's stock rose $2.73, or 6.82%, to $42.78.

Massachusetts Financial Services Co is the second biggest fund firm holder of Bank of New York, with a collective stake of 3.315%. (MFEBX)MFS Value Fund has 2.27 million shares, (MSFRX)MFS Total Return Fund has 1.75 million shares, and (MFRFX)MFS Research Fund has 1.64 million shares.

Barclays Global Investors UK Holdings Ltd's funds collectively hold 3.079% of Bank of New York. iShares S&P 500 Index Fund (IVV) has 1.09 million shares, iShares 1000 Value Index Fund (IWD) has 879,054 shares, and iShares S&P 500 Barra Value Index Fund (IVE) has 522,060 shares.

UBS Global Asset Management is the biggest mutual fund investor in Mellon, with a collective stake of 9.082%, according to TheStreet.com Ratings. No breakdown of holdings by individual fund was available, however.

Among other major fund investors, the T.Rowe Price Group's funds collectively hold 3.498% of Mellon. (PRFDX )T.Rowe Price Equity Income Fund has 6.38 million shares, followed by (TRVLX)T.Rowe Price Value Fund with 820,000 shares and (TRBCX)T.Rowe Price Blue Chip Growth Fund with 680,000 shares.