Banks
Credit Suisse Makes Swap for Stake in Aberdeen
The Associated Press
12/31/08 - 10:44 AM EST
Zurich, Switzerland -- Credit Suisse (CS Quote) said Wednesday it is selling parts of its asset management business to Aberdeen Asset Management in return for a 24.9% interest in the British investment firm.
The move will see Switzerland's No. 2 bank transfer some 75 billion Swiss francs ($70.93 billion) in managed assets to Aberdeen.
Credit Suisse said it will receive almost a quarter of Aberdeen's future stock in return, valued at 381 million francs ($360 million), and take a seat on Aberdeen's board.
"This agreement enables us to focus our resources on our alternative investments, asset allocation, and Swiss businesses, where we have strong performance and critical mass, and which better align with our integrated banking model," said Rob Shafir, head of Credit Suisse's asset management division.
The Zurich-based bank announced earlier this year that it was refocusing its asset management business after making a pretax loss of 45 million francs ($43 million) during the third quarter.
Aberdeen is one of the biggest independent fund managers in Britain, and news of the deal sent its stock price soaring 8.4% to 113 pence in London trading.
The Scottish company said the transaction will enable it to increase its presence in Australia, Germany, Switzerland, Japan and Britain.
The deal requires approval from regulators and Aberdeen's shareholders, and is expected to be completed in the second quarter of 2009, Credit Suisse said.
The bank said it expects to book a 600 million francs ($568 million) goodwill charge as a result of the transaction.