AT THE BELL

Bull & Bear changing stripes

Bull & Bear Advisers Inc. is asking shareholders of two of its closed-end bond funds, the Municipal Income and U.S. Government Securities funds, to allow up to 50% of assets to be invested in stocks.

Accordingly, the New York-based money manager plans to change the names of the two funds, although it gave no specifics in preliminary proxy filings last week with the Securities and Exchange Commission.

The $12.2 million Municipal Income was trading at $15.88 on the New York Stock Exchange at Thursday’s close, slightly below its net asset value of $16.48 as of June 30. The $35.7 million U.S. Government Securities closed at $13.06 on Thursday; its net asset value at the end of last month was $14.44, according to Morningstar Inc.

Kaufmann sale seen close

Industry sources say New York’s Edgemont Asset Management Corp. — which runs the highly promoted $5.8-billion Kaufmann Fund — is close to hammering out a sale to Waddell & Reed Financial Inc. The sale price — which would include cash and Waddell & Reed stock — is expected to be around $500 million, sources say.

They add, however, that a sizeable portion of the payout would be contingent on Edgemont meeting revenue and profit targets over the next three to five years. The Kaufmann fund has suffered $435 million in net redemptions through the first five months of this year, according to Financial Research Corp. of Boston. Overland Park, Kan.-based Waddell & Reed managed $26 billion in assets as of March 31, mainly in its United, Waddell & Reed and TMK/United fund families.

It’s a wrap for PMC

An investment management firm in Canada has signed a letter of intent to acquire a 55% stake in PMC International Inc. of Denver, which provides wrap accounts and other services to fee-based financial advisers at banks, insurance companies and independent broker-dealers.

Dundee Bancorp of Toronto is expected to pay $24 million, or 6 million shares at $4 each. PMC, which has been struggling for years, was in search of a capital-rich parent. The transaction is expected to close in 45 to 60 days.

Equitable lands CPA deal

The Equitable Life Assurance Society of the United States has become the latest investment firm to tap certified public accountants as sources for client referrals. Following similar moves by wirehouses Salomon Smith Barney Holdings Inc. and Merrill Lynch & Co., the New York-based insurance and securities operation recently won a plum agreement with IA Consulting, which represents 50 U.S. CPA firms.

Under the three-year deal, IA-affiliated CPAs who want to offer clients investment services will work with Equitable reps and share in product commissions at levels based on the CPA’s role in financial planning.

Russell-ing up some bids

At least two European companies are believed to be interested in buying the $42 billion-asset investment management operations of Frank Russell Co., according to InvestmentNews sister publication Pensions & Investments.Paris-based bank Societe Generale — which has a joint venture with Russell — and Dutch insurance giant Aegon NV both may be courting the 62-year-old privately held firm, which is based in Tacoma, Wash. Russell reported total revenue of $305 million in 1997.

Barclays co-chief quits

Frederick Grauer, 51, the chief architect of index investing goliath Barclays Global Investors, has resigned. His plans have not been disclosed. The San Francisco-based unit of London banking giant Barclays PLC manages $575 billion in assets and is the world’s biggest institutional money manager. The firm also advises a number of mutual funds. Patricia Dunn, 45, who has been co-chairman for 18 months, is now chairman.

Dow, Corning stock unbowed

Dow Corning Corp.’s agreement to pay $3.2 billion to women who used its silicone breast implants did little to deflate the stocks of Dow Chemical Co. and Corning Inc., partners in the bankrupt venture. Dow Chemical Co. dropped less than two points for the week and Corning fell less than one.

The mutual fund with the largest percentage invested in Corning is Armstrong Associates Large Growth Fund, at 4.68%; Phoenix-Engemann Value Fund, at 4.56%, has the top weighting in Dow Chemical, according to Morningstar Inc.