Deals & People July 1, 2007

Security Benefit Reaches Deal to Acquire Rydex

Security Benefit on Thursday announced the signing of a definitive purchase agreement to acquire Rydex Investments.
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The combined retirement, mutual fund and investment technology solutions provider will have roughly $35 billion in assets under management and $52 billion of assets under administration at closing, according to the announcement. The combined firm will also be the 6th largest provider of exchange-traded funds (ETFs).
Rydex Investments will retain its current management team and existing location/facilities in Rockville, Maryland, and will operate as a new and separate line of business under Security Benefit’s holding company, the announcement said. Other Security Benefit business lines, including Security Global Investors, Employer, Advisor and se2/business processing, will remain distinct business operations and continue to be based in Topeka, KS; Stamford, CT; San Francisco, CA; Cincinnati, OH; and Folsom, CA.
“Together, Security Benefit and Rydex Investments provide a unique, strategic partnership that will benefit clients, distribution partners and employees of both companies,” said Kris Robbins, Security Benefit chairman of the board, president and chief executive officer, in the announcement.
News of the deal squelches reported rumors that Rydex would be acquired by E*Trade Financial or Invesco (See Rydex Investments Near Reaching Deal to Sell).
Compliance July 1, 2007

EEOC Accuses Merrill of Discrimination

The Equal Employment Opportunity Commission (EEOC) has filed a claim against Merrill Lynch&Co. accusing the firm of discrimination against an Iranian Muslim employee.
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Majid Borumand claims he was denied promotions and ultimately fired because of his ethnicity and faith, according to the Associated Press. The EEOC said in its complaint that, while employed at the company, Borumand was subjected to “remarks that reflected animus toward his national origin and religion.”
The AP said the EEOC further claimed that on one occasion Borumand was told “the reason you are not allowed on the trading floor is because you are from a country which has a high risk factor and a threat.”
The agency identified Borumand as an analyst in Merrill Lynch’s global markets and investment banking model development group, but the company said he was a senior programmer in a global equity technology group.
Merrill Lynch denies any wrongdoing.

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