NJ officials-Stop BlackRock's move to Philadelphia
NEW YORK, July 16 (Reuters) - New Jersey state senators on Wednesday called on the governor to hold an emergency summer session to stop companies such as BlackRock Inc (BLK.N) from moving out of state.
Sen. Thomas Kean, the Republican state Senate leader, said it appeared that the legislature's effort to encourage companies like BlackRock, to expand around existing mass transit centers such as Trenton and New Brunswick were "inadequate."
BlackRock, the largest publicly-traded U.S. asset manager, now has about 1,200 asset managers in Plainsboro, New Jersey, a suburb of Princeton. Kean cited newspaper reports that said these high-income earners will move to Philadelphia.
A report in Wednesday's edition of The Star Ledger said BlackRock was "very close" to a deal for new offices in Philadelphia, citing three executives "with knowledge of the negotiations."
BlackRock declined comment while a spokesman for Gov Jon Corzine, a Democrat, had no immediate comment. A spokesman for Pennsylvania Governor Ed Rendell, also a Democrat, was not immediately available.
"The exodus of jobs and capital from New Jersey is reaching epidemic proportions," Kean said in a statement.
In 2005, BlackRock bought Merrill Lynch's MER.N asset management business, which serves institutional investors. BlackRock must find a new new home by late 2011 or early 2012, before the lease for its Plainsboro offices expires, according to a source familiar with the company.
For years, New York City and New Jersey have vied for financial companies because they and their well-paid employees give tax revenues a boost. The Philadelphia area is home to a number of such companies, including the Vanguard Group, while one of Pennsylvania's biggest banks, PNC Financial Services Group (PNC.N), has a major stake in BlackRock.
