Broker-dealer apparently backs out of combination with Dekania Corporation. The merger between Advanced Equities Financial, Chicago-based holding company that sells securities, annuities and stakes in late-stage start-up funding, and Dekania, a Philadelphia-based "business combination company," seems to be off.

Shareholders of Advanced Equities, a closely held company backed by Chicago-based Apex Venture Partners, rejected the deal, according to a Dekania press release dated 7 October 2008.

Shell company

Executives at Advanced Equities and Dekania weren't available for comment.

Dekania raised $99.5 million in an IPO early in 2007. It has until February 2007 to make an acquisition or it has to return that money to its investors.

On 16 September 2008, Dekania agreed to take a stake in Advanced Equities for about $90 million, payable over three years. Advanced Equities' management -- led by chairman Keith Daubenspeck and CEO Dwight Badger -- was to remain at the helm.

The Dekania press release doesn't say why Advanced Equities' shareholders rejected the merger proposal, but says it is "evaluating the effectiveness of the alleged shareholder action, as well as the alternatives available to it with respect to the merger."

Advanced Equities' companies support an independent brokerage force with approximately 900 financial advisors in 450 U.S. locations. -FWR

Purchase reproduction rights to this article.