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Federated Investors


agreed to acquire

Edgemont Asset Management

, the adviser for the $3.7 billion Kaufmann Fund, for about $400 million.

Federated, a Pittsburgh-based investment management company, said it will make an upfront payment and a contingent series of payments based on the average assets of the fund 30 days before the transaction closes.

Federated Investors expects to close the transaction in the first quarter of 2001 and said the acquisition should add to earnings "modestly" in the first year.

Lawrence Auriana and Hans Utsch will continue to manage the Kaufmann Fund, which will be known as the Federated Kaufmann Fund.

Shares of Federated Investors were recently up 88 cents, or 3.4%, to $26.50 on the

New York Stock Exchange