Hedge Fund Presses Mellon To Break Itself Up

Boston based hedge fund Highfields Capital is pressuring Mellon Financial to separate its two main businesses, arguing shareholders are losing money because the company tries to do too many things at once. Highfields, one of Mellon's 10 largest shareholders, in

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Boston-based hedge fund Highfields Capital is pressuring Mellon Financial to separate its two main businesses, arguing shareholders are losing money because the company tries to do too many things at once. Highfields, one of Mellon’s 10 largest shareholders, in a letter sent before Christmas told Mellon’s chairman and chief executive, Martin McGuinn, that his company cannot be both an investment management company and a processing firm, according to Reuters. The hedge fund also said that it appeared that Mellon had tried to buy the asset management arm of Merrill Lynch earlier this year but that the deal fell apart either because the management did not allow a Merrill executive to run the operation, or because it was not willing to split its two businesses.

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