Buyout funds approach Santander and Intesa over Allfunds deal: sources
By Pamela Barbaglia
LONDON (Reuters) - Buyout firms have approached Santander Asset Management SASS.SN and Intesa Sanpaolo (ISP.MI: Quote) over a possible takeover of the Allfunds Bank mutual fund platform, sources told Reuters.
U.S. buyout fund Bain Capital and Europe's Advent are planning to make a joint bid for the business, which could be worth up to 2 billion euros ($2.2 billion), the sources said.
Cinven [CINV.UL], Permira, BC Partners and Hellman & Friedman have also discussed Allfunds with its Spanish and Italian owners, prompting a strategic review of the platform.
Santander Asset Management and Intesa, which own 50 percent each of the Madrid-based firm, have decided to sell their shares and are seeking advice from large investment banks to begin an auction before the end of the year, the sources said.
Mid-sized asset managers appeal to private equity investors as they generate stable returns and offer scope for growth over a three to five year period.
Santander Asset Management, Intesa Sanpaolo, Cinven, Advent, BC Partners and Hellman & Friedman all declined to comment, while Bain Capital and Permira were not immediately available.
Banco Santander (SAN.MC: Quote) has a 50 percent stake in Santander Asset Management, while U.S. buyout firms Warburg Pincus [WP.UL] and General Atlantic control the remainder.
Santander Asset Management is selecting an adviser, while Intesa is working with U.S. bank Morgan Stanley, they said. Continued...