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July 01, 2003 at 08:00 PM
LONDON (HedgeWorld.com)–American Express Financial Corp. agreed to buy Threadneedle Asset Management Holdings Ltd. from Zurich Financial Services Group for US$570 million in cash.
Threadneedle, a manager of US$1.1 billion in hedge funds and US$75 billion overall, will not change its operations as a result of the shift in ownership and will continue to manage assets for Zurich for up to eight years under terms of the agreement, according to a company statement on the sale. The deal is subject to regulatory approval and is expected to close in the fourth quarter.
The sale by Zurich is another move in its efforts to focus on its core businesses in insurance. A Zurich spokeswoman declined comment on any future plans for hedge fund and structured product manager Zurich Capital Markets, which has been the subject to sale rumors, on and off, for several months.
Threadneedle’s chief executive, Simon Davies, will remain with the company and will report to Jim Cracchiolo, group president of global financial services and chairman and chief executive of American Express Financial Advisors, Minneapolis.
