[Federal Register Volume 61, Number 241 (Friday, December 13, 1996)]
[Notices]
[Pages 65615-65616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31615]
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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 22379; 811-4332]
Mitchell Hutchins/Kidder, Peabody Equity Income Fund, Inc.;
Notice of Application
December 6, 1996.
AGENCY: Securities and Exchange Commission (``SEC'').
[[Page 65616]]
ACTION: Notice of application for deregistration under the Investment
Company Act of 1940 (the ``Act'').
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APPLICANT: Mitchell Hutchins/Kidder, Peabody Equity Income Fund, Inc.
RELEVANT ACT SECTION: Section 8(f).
SUMMARY OF APPLICATION: Applicant requests an order declaring that it
has ceased to be an investment company.
FILING DATE: The application was filed on October 15, 1996.
HEARING OR NOTIFICATION OF HEARING: An order granting the application
will be issued unless the SEC orders a hearing. Interested persons may
request a hearing by writing to the SEC's Secretary and serving
applicant with a copy of the request, personally or by mail. Hearing
requests should be received by the SEC by 5:30 p.m. on December 31,
1996, and should be accompanied by proof of service on the applicant,
in the form of an affidavit or, for lawyers, a certificate of service.
Hearing requests should state the nature of the writer's interest, the
reason for the request, and the issues contested. Persons may request
notification of a hearing by writing to the SEC's Secretary.
ADDRESSES: Secretary, SEC, 450 Fifth Street, N.W., Washington, D.C.
20549. Applicant, c/o Dianne E. O'Donnell, Legal Department, Mitchell
Hutchins Asset Management Inc., 1285 Avenue of the Americas, 18th
Floor, New York, New York 10019.
FOR FURTHER INFORMATION CONTACT:
Diane L. Titus, Paralegal Specialist, at (202) 942-0564, or Mary Kay
Frech, Branch Chief, at (202) 942-0584, (Division of Investment
Management, Office of Investment Company Regulation).
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained for a fee from
the SEC's Public Reference Branch.
Applicant's Representations
1. Applicant is an open-end, diversified management investment
company organized as a corporation under the laws of the State of
Maryland. On June 21, 1985, applicant registered under section 8(a) of
the Act and filed a registration statement on Form N-1A pursuant to
section 8(b) of the Act and the Securities Act of 1933, covering an
indefinite number of shares of common stock. The registration statement
was declared effective on October 8, 1985, and the initial public
offering of common stock commenced thereafter.
2. On April 26, 1995 and July 20, 1995, applicant's Board of
Directors approved an Agreement and Plan of Reorganization and
Liquidation (``Plan'') between applicant and PaineWebber America Fund
on behalf of its series, PaineWebber Growth and Income Fund (``PW
Fund''), whereby PW Fund was to acquire all the assets of applicant in
exchange solely for shares of beneficial interest in PW Fund and the
assumption by PW Fund of all of applicant's liabilities. In accordance
with rule 17a-8 of the Act, applicant's directors determined that the
reorganization was in the best interests of applicant and that the
interests of applicant's existing shareholders would not be diluted as
a result.1
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\1\ Applicant and PW Fund may be deemed to be affiliated persons
of each other by reason of having a common investment adviser,
common directors, and/or common officers. Although purchases and
sales between affiliated persons generally are prohibited by section
17(a) of the Act, rule 17a-8 provides an exemption for certain
purchases and sales among investment companies that are affiliated
persons of each other solely by reason of having a common investment
adviser, common directors, and/or common officers.
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3. According to applicant's proxy statement, the directors
considered a number of factors in approving the Plan, including, (a)
the compatibility of the investment objectives, policies, and
restrictions of the funds, (b) the effect of the reorganization on
expected investment performance, (c) the effect of the reorganization
on the expense ration of the PW Fund relative to its current expense
ratio, and (d) possible alternatives to the reorganization, including
continuing to operate on a stand-alone basis or liquidation.
4. Proxy materials relating to the Plan and the transactions
contemplated thereby and a combined prospectus relating to the shares
of PW Fund to be issued were mailed to applicant's shareholder on or
about September 8, 1995. At a special meeting held on October 6, 1995,
applicant's shareholders approved the Plan.
5. On October 13, 1995 (the ``Closing Date''), applicant had
2,816,986.797 of Class A shares, 75,614.434 of Class B shares, and
153,428.676 of Class C shares of common stock outstanding, having an
aggregate net asset value of $55,983,774.35 for Class A shares,
$1,493,700.44 for Class B shares, and $3,044,662.68 for Class C shares,
and a per share net asset value of $19.87 for Class A shares, $19.75
for Class B shares, and $19.84 for Class C shares. Pursuant to the
Plan, applicant transferred to PW Fund all rights, title, and interest
in and to applicant's assets. In exchange, therefor, PW Fund assumed
all liabilities, debts, obligations, and duties of applicant, and
issued to applicant the number of shares of PW Fund determined by
dividing the net asset value of a share of applicant by the net asset
value of a share of PW Fund, in each case as of the close of regular
trading on the New York Stock Exchange, Inc. on the Closing Date.
6. On the Closing Date, applicant liquidated and distributed pro
rata to its shareholders of record, determined as of the close of
business on the Closing Date, the shares of PW Fund received by
applicant in the reorganization, in exchange for such shareholders'
shares of applicant.
7. The expenses incurred in connection with the reorganization
consisted primarily of legal expenses, expenses of printing and mailing
communications to shareholders, registration fees, and miscellaneous
accounting and administrative expenses. These expenses totalled
approximately $250,000 and were borne by applicant and PW Fund in
proportion to their respective net assets.
8. As of the date of the application, applicant has no assets,
debts or liabilities, and has no securityholders. Applicant is not a
party to any litigation or administrative proceedings. Applicant is not
now engaged, and does not propose to engage, in any business activities
other than those necessary for winding-up of its affairs.
9. On January 30, 1996, applicant and PW Fund filed Articles of
Transfer with the Maryland State Department of Assessments and
Taxation. Applicant intends to file Articles of Dissolution with the
State of Maryland.
For the SEC, by the Division of Investment Management, under
delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 96-31615 Filed 12-12-96; 8:45 am]
BILLING CODE 8010-01-M
