Generali group has appointed JP
Morgan to sell its private banking arm BSI, press reports
suggest.
The move confirmed Genarali’s
intentions to get the fresh capital it needs by divesting itself of
the Lugano-based private bank, as PBI revealed last month.
Go deeper with GlobalData
BSI rumored sale price of around
$2bn is attracting the interest of several banks.
Bank Julius Baer and rival
Raiffeisen Group, owner of a chunk of Bank Vontobel, are seen as
the most likely bidders for BSI.
Stocks down, CEO and BSI
out
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By GlobalDataPBI reported that the Italian
insurance giant was in need of an estimated €5bn ($6.4), as its
capital was depleted by exposure to Italy’s sovereign debt.
Genarali’s CEO Giovanni Perissinotto
was ousted by investors in June in a vote of no confidence led by
investment bank Mediobanca, after earning fell 50% and the stock
price almost dropped to its lowest level in the last 20 years.
Replacing CEO Mario Greco, who is to
take up his post the first of August, will work to cut costs
creating synergies at group level and to review Generali’s
permanence in non core markets such as private banking, Milan
analysts said.
Good results, hungry
potential bidders
BSI reported an upbeat performance
for 2011, with net new money inflow 8.8% higher at CHF6.7bn
($6.86bn).
That brought total assets under
management (AuM) to CHF77.7bn, up from CHF76.2bn in 2010.
