Stilwell Units Restructure Into Janus Whiston Is Named CEO Up to 140 to lose jobs; Janus to maintain focus, Berger funds may merge.(MUTUAL FUNDS)

Byline: DAN MOREAU

In a shakeup following a sharp decline in assets under management, Janus Capital Management will merge with its parent, Stilwell Financial, at year-end and assume the strategic direction of all of Stilwell's asset-management operations.

Mark Whiston, an 11-year veteran at Janus, was named chief executive, ending the scramble for a new head after founder Tom Bailey left July 1.

Investors in Stilwell are likely to see an earnings boost that could put some fire in its share price, Merrill Lynch analyst Judan Kraushaar said. Stilwell shares jumped 7.6% on huge volume Tuesday amid a plunging market.

"Janus had all the bargaining chips," said Morningstar Inc. mutual fund analyst Brian Portnoy. "This was a move to keep Janus management in place. Stilwell is now mostly Janus, and if management left, Stilwell would be a shell."

Janus said investors would see no change in their funds' structures or strategies as a result of the merger. It said the fund family's emphasis on researching companies for its portfolios will continue.

But its Berger Funds unit could well see some changes, Whiston said. Some growth-oriented Berger funds may be merged with existing Janus funds. Berger value funds are likely to remain unchanged.