SECURITIES

2 Large Fund Families Weighing Merger: Invesco and AIM have tentatively agreed to merge, sources close to both sides have told the Washington Post. Invesco, a British-based investment management company, and AIM Management Group Inc. of Houston expect to complete the merger by the end of October, creating a diversified investment management company with about $75 billion in mutual fund assets and another $70 billion in pension fund assets. Invesco, which owns the $13-billion no-load Invesco Funds Group, would gain enormously from a merger with AIM, which controls $61 billion in funds distributed with sales fees through stockbrokers and financial planners. AIM already claims to be the 13th-largest U.S. mutual fund company, and the merger could put it into the top 10. The sources said the owners are inclined to do a “merger of equals” in which Invesco will offer AIM’s owners cash and stock in Invesco in exchange for stock in AIM. Spokesmen for Invesco and AIM declined to comment.