Wednesday, February 20, 2008

Stanchart's AMC Sale Talks At Final Stage

Standard Chartered's plans to sell its asset management company (AMC) has now entered its final stage and Swiss Bank UBS is expected to make another attempt to buy the AMC. But this time whoever gets it might have to pay much more because the valuations have shot up. After the first sale agreement with UBS was scrapped due to regulatory concerns the possible re-entry of UBS into the bidding process has once again raised questions about the future of the sale process.

Standard Chartered is currently in the final stages of the new bidding process. Sources say seven bidders have been shortlisted from a list of 40 and invited to submit financial bids.The bidders include prominent global names like Goldman Sachs, Lehman Brothers & Emirates Bank. UBS is also likely to re-enter the race, now that the RBI has cleared a full banking licence for the Swiss bank.With UBS making a surprise comeback into the race to bag Standard Chartered's lucrative asset management business, many question whether the new bidding process could also now be in jeopardy.

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