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Tim Quast
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We're All HFTs Now

In this guest commentary, author Tim Quast looks back at the history of HFT and how the market has evolved to where many firms now fit the definition of high-frequency trader.

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February 1, 1998

Actual Merger

By John A. Byrne

Minneapolis-based Dean Rauscher, a full-service regional brokerage and investment bank, is acquiring Twin City rival Wessels, Arnold & Henderson in a deal valued at $150 million. The nominal purchase, which is expected to close March 31, includes $120 million in cash and $30 million in five-year subordinated debentures. The price tag is more than 13 times Wessel's estimated 1998 earnings.

Rob Gales, head of equity trading at Wessels, cited a strong combination in research expertise as reason for the agreement. "Dain has a proven background in financial-services and energy research," Gales said. "Wessels has a strong research staff in technology, healthcare and consumer-product [sectors]."

He added that Wessels agreed to the merger to have access to Dain's network of 1,200 retail brokers. "I also think with our office in Palo Alto, Dain can make a push to expand in California," Gales said.

William A. Johnstone, Dain's vice chairman, and Wessel's Chief Executive Kenneth J. Wessels will lead the transition team.