Trimark and AIM will close their deal this summer

No decisions on the future of the fund brands and few decisions regarding integration have been made, senior executives said at a press conference this afternoon. Trimark’s Robert Krembil will become chaiman of the new firm. AIM’s Rob Hain will take the president and CEO titles. Trimark co-founder Arthur Labatt will stay on for an undetermined period in a supervisory role, but will leave his day-to-day duties.

Hain wouldn’t be pinned down on potential job losses at the combined firm, except to say that the two firms see themselves as very complementary, and they will try to “minimize” the impact of the deal on their respective staffs. The deal is expected to close in late July or early August.

Hain stressed that the Trimark brand won’t disappear, calling that idea “foolish.” Trimark will likely stand as the firm’s value fund group, while AIM will cover off the growth and momentum styles. No decision has been made regarding the name of the overall management company.

Hain stressed that the deal will allow AIM to “think globally and act locally”, noting that the new exchangeable shares created by the deal will give Canadians the opportunity to own a global investment manager as Canadian property. Krembil noted that the deal allows Trimark to become a “global player on a huge scale in one fell swoop.”

Trimark’s investment bankers, RBC Dominion Securities Inc., were represented by Chuck Winograd. He explained that the combination of cash, stock and debentures involved in the deal was necessary to give institutional investors as much flexibility as possible. Hain said that significant shareholder, AIC Funds Inc., will likely be approached tomorrow in an effort to sell the deal.