UPDATE: AXA Receives 5 Bids For Private Equity Arm - Source
October 04 2011 - 11:25AM
Dow Jones News
French insurance giant AXA SA (CS.FR) received five bids for its
private equity arm by Monday's deadline, a person familiar with the
situation told Dow Jones Newswires Tuesday.
Kohlberg Kravis Roberts & Co., BlackRock Inc. (BLK),
Canadian asset manager Onex Corp. (OCX.T), Canadian pension fund
Caisse de Depot et Placement du Quebec and Government of Singapore
Investment Corp., the Singapore sovereign wealth fund, all
submitted first-round bids.
Other potential bidders that haven't yet had a chance to meet
with management may submit bids in the next few days, the person
said.
AXA has hired Credit Suisse Group (CS) to handle the sale of its
private equity arm, which manages $28 billion in assets and could
fetch more than GBP300 million.
There is also a possibility that AXA will retain a minority
stake in the business.
Dominique Senequier, chief executive of the business, favors a
management buyout of the business backed by one of the potential
buyers, according to press reports.
Investors in private equity funds, known as limited partners,
need to be reassured that their funds will be managed at a
similarly high level under any new ownership.
A model that may be adopted is one used by Carlyle Group which
bought Dutch private equity manager Alpinvest Partners in January.
Alpinvest manages EUR32.3 billion and still operates independently
within the Carlyle portfolio.
"Keeping all levels of management is key to the AXA Private
Equity deal and its limited partners," said another person familiar
with the matter.
Carlyle Group, Eurazeo (RF.FR) and 3i Group PLC (III.LN) aren't
among the bidders, people added.
-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241;
marietta.cauchi@dowjones.com
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