August 11, 1998, the United States Amoco Corp (NYSE: AR) and British Petroleum Co (BP) PLC (NYSE: BP) announced a merger with BPC Amoco. The deal was the largest industrial merger to date, and to create the third-largest oil company, BP (NYSE: BP). This case focuses on the issues related to the integration of employee-defined contribution plans in the U.S. subsidiary of Amoco and BP. One of them was the fact that prior to the merger plans were very different investment structures. While Amoco offered to employees only low - cost index funds, BP America relied on actively managed mutual funds. The new plan, which will have more than 40,000 members and $ 7 billion in assets, will either have to choose one of these approaches, or to integrate them into a single structure. "Hide
by Luis M. Viceira Source: Harvard Business School 17 pages. Publication Date: October 26, 2000. Prod. #: Two hundred and one thousand and fifty-two-PDF-ENG
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