Aberdeen Asset Management will acquire Swiss banking major Credit Suisse's fund management arm for about 250 million pounds, says a media report.
"Aberdeen Asset Management is to pay 250 million pound for Credit Suisse's fund management arm in an all-share deal," The Times reported today.
Aberdeen Asset Management is the second largest institutional investor with 6.6 per cent stake in the troubled Indian software exporter Satyam Computer Services. Aberdeen has stood solidly behind the software exporter in the wake of Satyam-Maytas takeover fiasco.
As part of the transaction, the Swiss bank would take a 25 per cent stake in the UK fund management group, making it the biggest stakeholder in the company, the report published online said.
Currently, Aberdeen runs a business with around 110 billion pounds worth of assets under management and would acquire an additional 40 billion-pound worth.
"The purchase will help to turn Aberdeen, which is run by Martin Gilbert, into a global player with operations in the US, Asia and across Europe, although job cuts at the division are likely when it takes over," the daily noted.
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According to the report, the bank put the business up for sale earlier this year.
"A rival cash offer was understood to have been made by Schroders but it is thought to have pulled out as Credit Suisse wanted to complete the sale before the end of the year," it added.