Bloomberg News

Guggenheim Said to Weigh Bid for Deutsche Bank’s Fund Units

February 07, 2012

(Adds unit’s results in the fifth paragraph.)

Feb. 6 (Bloomberg) -- Guggenheim Partners LLC is among the companies preparing to bid for Deutsche Bank AG’s asset- management divisions ahead of a deadline this week, said a person with knowledge of the matter.

The fund manager may get competition from Power Corp. of Canada, Macquarie Group Ltd., State Street Corp., Ameriprise Financial Inc., and Apax Partners LLP, which have been studying bids for some or all of the business, said people with knowledge of the talks, who asked not to be named because the talks are private. JPMorgan Chase & Co., which had earlier shown interest in parts of the unit, is no longer in talks, the people said.

Deutsche Bank, the biggest in Germany by assets, said in November it was reviewing its global money-management business except for the European and Asian mutual-fund divisions. The parts for sale, including institutional fund management, a real estate investment unit and U.S. mutual funds, comprise about 400 billion euros ($525 billion) of assets under management, people with knowledge of the effort said last month.

Guggenheim, founded in 2000 with backing from the Guggenheim family, is based in Chicago and New York and manages more than $125 billion of assets, according to its website.

Deutsche Bank’s entire asset-management unit, including the DWS businesses being kept, reported 2011 pretax profit of 446 million euros, up 66 percent from the previous year. Kevin Parker, head of asset management, cut costs and headcount by about a third from 2007 to 2010 while exiting businesses not considered strategically relevant to boost profit.

Raising Capital

The German lender needs to raise 3.2 billion euros after Europe’s top regulator asked the region’s banks to bolster their capital buffers amid the sovereign-debt crisis.

Michelle Lee, a spokeswoman for Guggenheim, declined to comment, as did Klaus Winker, a spokesman for Frankfurt-based Deutsche Bank. Representatives of Sydney’s Macquarie, JPMorgan in New York, Boston’s State Street, Power Corp. in Montreal, and London-based Apax. Ben Pratt, a spokesman for Minneapolis-based Ameriprise, didn’t immediately return a call.

--With assistance from Cristina Alesci in New York. Editors: Josh Friedman, Steven Crabill

To contact the reporters on this story: Zachary R. Mider in New York at zmider1@bloomberg.net; Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net; Christopher Condon in Boston at ccondon4@bloomberg.net

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net


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