Wachovia may not be keen to sell its asset management unit, Evergreen Investments, but the fourth-largest U.S. bank may do just that if the credit crisis worsens and its capital needs increase.
Robert Steel, hired last month from the U.S. Treasury to replace the ousted Ken Thompson as Wachovia chief executive, has said he might sell assets to help generate $5 billion of fresh capital by the end of 2009.
In an August 5 meeting, management including Steel said a sale of Evergreen was unlikely, UBS analyst Matthew O'Connor wrote. But experts said Steel could reconsider.
Bankers were split on how much the unit, which manages $245.9 billion, was worth, with one saying it could be sold in a multibillion-dollar transaction.
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