Prudential-Bache Calls of Plan to Buy Thomson

The Prudential Securities Group says it has called off its plan to purchase Thomson McKinnon Inc., a deal that could have created the nation’s third-largest brokerage operation.

The deal, announced June 13, was canceled after Prudential discovered problems with Thomson McKinnon’s financial records, Prudential officials said. The value of the deal was never disclosed.

“It was the impression of our administrative task force that there were problems in the balance sheet of sufficient size that it would have been imprudent to proceed with the transaction as originally conceived,” said George L. Ball, chairman and chief executive of Prudential-Bache Securities, the brokerage arm of Prudential Securities. Prudential Securities is owned by Prudential Insurance Co. of America.

Prudential-Bache told the New York Times that it remained interested in trying to buy Thomson McKinnon branch offices.