Deals & People November 28, 2007

Prudential Snaps Up UBOC Recordkeeping Biz

Union Bank of California, N.A., has signed a definitive agreement to sell its retirement recordkeeping business to Prudential Retirement.
Reported by
The deal includes UBOC’s proprietary SelectBenefit and certain selected TruSource relationships. Additionally, Prudential will add Union Bank’s proprietary HighMark mutual funds to its investment offerings for retirement plan sponsors and their participants.
According to a UBOC press release, the decision to exit the retirement recordkeeping business was based on analytical data that showed the bank lacked scale in the rapidly consolidating industry, and would be required to make significant investments in technology to enhance products, services and the overall processing environment in its recordkeeping operation to remain competitive and profitable.
Union Bank will continue to offer retirement plan recordkeeping services to clients going forward, but “in partnership with Prudential,’ according to UBOC Executive Vice President Johs Worsoe, head of Global Markets. The bank’s retirement trustee business will not be affected by the change, and Union Bank will remain custodian for certain parts of the business being transitioned to Prudential, according to the firm.
“This was a difficult decision reached after much deliberation, but I’m confident our clients will be well served by Prudential’s strong client focus and solid commitment to the retirement business,’ said UBOC Chief Executive Officer Masaaki Tanaka. “A large number of the employees affected by our decision will either be retained by Prudential or will potentially find positions elsewhere in our company.’
Prudential said the transaction will enable Prudential to build and enhance its relationships with Union Bank’s bankers, who will be able to offer Prudential Retirement products and services to their institutional banking customers. Under terms of the agreement, Prudential will pay $103 million for Union Bank’s book of retirement business, comprising approximately 670 plans, representing nearly 170,000 participants and approximately $8 billion in account values.
The companies expect to close the transaction in the fourth quarter of 2007 and complete the transition of the acquired retirement plans by June 30, 2008. Consummation of the transaction is subject to customary closing conditions, including regulatory approvals.
Diversions November 28, 2007

Grandma Got Run Over By a Lawsuit

Yes, just in time for the holidays, a fresh dispute has arisen regarding the use of that beloved yuletide chorus, “Grandma Got Run Over by a Reindeer.″
Reported by
On the chance that you aren’t familiar with the song, it was released in 1979 by one Elmo Shropshire (no relation to the Tickle Me Elmo that caused such consternation a few years back) and his then wife Patsy Trigg, under the name Elmo and Patsy (Patsy neither sings nor plays an instrument on the song). The song, which garnered national attention in 1984, revolves around the sad tongue-in-cheek tale of a grandma who, having left her medication at home, but having imbibed a bit too much eggnog, stumbles out into the snow, only to be found in the snow the next morning “with hoof prints on her forehead, and incriminatin’ Claus marks on her back.’
Elmo Shropshire has been sued for breach of contract by The Fred Rappoport Co., a firm that claims Elmo interfered in a $1 million-plus deal to sell (are you ready for this?) musical trucks, bobblehead dolls, snow globes and cookie jars featuring characters from the cartoon (you might think of it as an “animated show’) that was released in 2000 based on the song.
The Fred Rappoport Co. says it has the rights to use the song for products featuring characters from the cartoon – and says it got those specific rights under a previous 2004 settlement of a lawsuit filed by Elmo.
The new lawsuit, which seeks at least $2 million in damages, contends that Elmo this month improperly sent cease-and-desist letters to two companies that made a deal with Rappoport to market products featuring characters from the animated show. For his part, Elmo says that he was simply legally enforcing his rights to the song.
“He can sell any characters he wants from the movie,” Shropshire said, according to the Associated Press. “But I own the copyright from the song. He can’t use the song without my permission.”
Or, perhaps as Elmo himself might say:
“I’ve warned all my friends and neighbors.
Better watch out for yourselves.
They can never give a license,
To a man who drives a sleigh and plays with elves – and sings.’

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