FRANKFURT, Germany (HedgeWorld.com)–Commerzbank AG dropped plans to sell its U.K. investment unit Jupiter International Group, London, but is going ahead with plans to sell Montgomery Asset Management LLC, San Francisco.
Commerzbank officials decided to keep and build Jupiter rather than sell it at a price below its full value, according to a company statement. The company had been negotiating to sell the firm. Instead, Commerzbank will work with Jupiter’s management to realize full value of the company, which will include using Commerzbank’s distribution networks in Europe to sell its products, according to Commerzbank.
But negotiations to sell Montgomery to one of “several interested parties” continue, and a sale should be finished in the fourth quarter of this year, according to the statement. Montgomery manages about US$7.5 billion in total and is working to build a hedge fund business targeting retail type of investors.