Annaly to Buy Adviser Affiliate

Annaly Mortgage Management Inc., New York, has announced a merger agreement to acquire Fixed Income Discount Advisory Co., an affiliated investment adviser, for stock valued at $40.5 million to $90.0 million, depending on FIDAC's future revenues and pretax profits.Annaly said the New York-based FIDAC is a fee-based asset management business that managed, assisted in managing, or supervised approximately $13.1 billion in gross assets as of Sept. 30. Under the merger pact -- which provides for the merger of FIDAC into a newly formed Annaly subsidiary -- Annaly would issue common stock worth $40.5 million (as of Dec. 31) upon the consummation of the merger and would pay up to $49.5 million in additional common shares to FIDAC stockholders if FIDAC meets certain revenue and pretax profit targets over the next three years. Annaly, a mortgage real estate investment trust, can be found on the Internet at http://www.annaly.com.