Pacific Mutual, Connecticut Firm Merge, Raise $83 Million in Sale

NEWPORT BEACH — In a move creating the nation’s fourth-largest publicly traded money management company, Pacific Mutual Life Insurance Co. and four of its subsidiaries on Tuesday finalized a previously announced merger with Thomson Advisory Group L.P. of Stamford, Conn.

In addition, the newly formed company, Pimco Advisors L.P., raised more than $83 million Tuesday on the New York Stock Exchange by selling a minority stake of the new company to the public, which now owns 18% of Pimco Advisors. The Newport Beach mutual fund operator has $71 billion in customer assets.

Deteriorating market conditions Tuesday forced underwriters to downscale the planned offering to 4.6 million units--about half of the 9.3 million units planned when the sale was announced last month.

Managers of Pimco Advisors reduced the size of the offering because the sale price was too low, according to William S. Thompson, a managing director at Pimco. The price of Pimco Advisors fell 11% to $18.125 per unit Tuesday from $20.375 when the sale was announced in October. The transaction involved the sale of partnership units instead of shares of common stock.