OREANDA-NEWS. July 03, 2007 CACEIS, the French securities services provider, will take over the securities and custodial services of HypoVereinsbank (HVB), effective at the end of 2007. Both companies signed an agreement to this effect, reported the press-centre of  HVB.

CACEIS and HVB have been conducting exclusive nego-tiations since mid-March 2007. The agreement is subject to the consent of the competent regulatory authorities.

Matthias Sohler, Management Board Member and Chief Operating Officer of HVB stated: ?In CACEIS, we have found a strong strategic partner which has excellent knowledge of the in-ternational custodial business. We can thus ensure that the quality and service provided in this important segment of securities and custodial activities continue to be maintained at a high standard. Through the sale of these activities, we are at the same time realising tangi-ble and sustainable cost savings in the operative area and can focus more strongly on our core competencies.

Francois Marion, Chaiman of the Management Board of CACEIS:? For CACEIS, the acquisi-tion of HVB securities and custodial activities is part of our strategy of targeted international acquisition growth. This operation is an excellent opportunity for us, since HVB represents a solid actor in the German securities business, with a significant market share. For CACEIS it is a major step in the international expansion of our business and a first step in providing a comprehensive asset servicing in Germany. CACEIS intends to provide high quality of ser-vices to institutional clients in the German market. HVB customers will continue to receive securities services in the accustomed quality and scope. In addition, they will benefit from the size and product breadth of CACEIS.

CACEIS will establish its German custody business in Munich. In this regard, the French bank will take over Financial Services Markets Bank GmbH (FMSB), a HVB subsidiary which has been providing these services to HVB thus far. With effect from year-end 2007, FMSB will change its name to CACEIS Bank Deutschland GmbH. FMSB employees at both the Mu-nich and Hamburg locations number approximately 500 and have been guaranteed their jobs until the end of 2009. Both locations will be operated by CACEIS for at least five years following conclusion of the sales negotiations.

Lehman Brothers acted as exclusive financial advisor to HVB, and Lazard and Calyon to CACEIS in the transaction.