Deutsche Bank In Exclusive Talks To Sell Asset Management To Guggenheim
February 28 2012 - 10:47AM
Dow Jones News
Deutsche Bank AG (DB, DBK.XE) said Tuesday it is in exclusive
talks to sell most of its asset management business to Guggenheim
Partners.
A price wasn't disclosed and a deal may still not happen, said
people familiar with the matter. The business up for sale includes
roughly $537 billion (EUR400 billion) of assets under management.
Deutsche has been shopping it around since November and had
whittled the field of buyers down to a handful.
In a statement, the German bank said it is negotiating to sell
its mutual fund business in the Americas, its global institutional
asset management business, its insurance asset management business,
and its global alternatives asset management business. It isn't
selling its retail business in Germany, Europe and Asia.
Rumors about Deutsche's plans have swirled for months since it
said in November it was undergoing a strategic review of the
business. Dow Jones Newswires reported earlier this month that the
potential buyers included State Street Corp. (STT), Macquarie Group
Ltd. (MQG.AU), J.P. Morgan Chase & Co.'s (JPM) asset management
business and Apax Partners. That earlier report said analysts
valued the business at $2 billion to $3.3 billion.
Guggenheim is a New York- and Chicago-based investment bank led
by Mark Walter as chief executive and Alan Schwartz, a former CEO
of Bear Stearns Cos., as executive chairman. It has been expanding
recently, starting a proprietary trading business last year.
Last year, it organized its asset management operations into a
new unit, Guggenheim Investments, which has $125 billion of assets,
including $20 billion of ETFs.
In a statement Tuesday, a Guggenheim spokesman said the firm
"regularly evaluates opportunities to strengthen and enhance its
business platform and client offering, and has a strong track
record in managing clients' assets. We are pleased to enter into
exclusive negotiations with Deutsche Bank and believe its asset
management businesses represent an attractive opportunity for
Guggenheim to leverage our expertise."
-By Liz Moyer, Dow Jones Newswires; 212-416-2512;
liz.moyer@dowjones.com
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