T. Rowe Price Associates Inc. said yesterday that its stockholders approved a proposal to form a holding company called the T. Rowe Price Group.
The new company will become the parent of T. Rowe Price Associates and other subsidiaries that the Baltimore-based mutual fund company operates.
Shareholders approved a one-for-one stock exchange in which each share of T. Rowe Price Associates will be exchanged for each share of T. Rowe Price Group stock. The exchange is expected to take place later in the year.
Steven Norwitz, a Price spokesman, said the Price Group will give the company more "flexibility" in raising capital and making acquisitions.
"There are some administrative efficiencies involved," he said. "It just makes it easier to operate rather than have all of these businesses directly under T. Rowe Price Associates."
Said George Roche, T. Rowe Price's president and chairman: "The creation of a holding company will enhance our ability to compete both in the U.S. and internationally."
Price is among the country's largest mutual fund companies, managing $185 billion in assets for individuals and institutions.
The company's stock will keep the ticker symbol "TROW" on the Nasdaq market. Price's board of directors will also stay the same, but members will become directors of the Price Group.