Speculation about a takeover of one of Europe's largest asset managers is mounting. One name frequently mentioned is Credit Suisse, Switzerland's second-largest bank.
Survival is a word that springs to mind in the current wave of consolidation that has taken hold of the financial industry. Especially the medium-sized companies face a tough fight, said Martin Gilbert (pictured below) in an interview with finews.ch in May. The chief executive of Aberdeen Asset Management made it clear that his company intended to be a player.
«We don't exclude a takeover in Switzerland,» the Scot said at the time.
From Hunter to Prey
Today, Aberdeen, one of the biggest foreign asset managers in Switzerland, has become the target of takeover speculation itself. Gilbert has taken contact with several rivals to forge a merger, the «Financial Times» (by subscription only) reported.
Apart from Blackstone and KKR, Credit Suisse is said to be interested in Aberdeen. The two companies have a common past. CS in 2008 sold a large part of its asset management, with funds worth 75 billion francs, to Aberdeen. Through this transaction, the Swiss temporarily became a major shareholder of Aberdeen.
«Among Friends»
In the new strategy of Credit Suisse, presented by CEO Tidjane Thiam last week, asset management is mentioned prominently. Iqbal Khan, the new head of international wealth management, is charged with substantially expanding its role within the company. A transaction «among friends» might fit the bill.
Aberdeen faces serious problems. The shares dropped by a quarter of the past six months and the asset manager lost £10 billion in assets within the past quarter. One of the reasons is the strong exposure to the Asian markets, which are in turmoil.
Denial by Aberdeen
Within hours, Gilbert vehemently denied the «Financial Times» article. In his 32 years at the helm of Aberdeen he never ever talked to anyone with a view to sell the company, Gilbert was cited as saying in «The Press and Journal».
Thiam told «Finanz und Wirtschaft» recently that he didn't intend to buy anything at the moment and Credit Suisse didn't comment the story, according to the «Financial Times».
Shrinking Margins
The story by the usually well-informed British newspaper nevertheless rings a bell, because margins are shrinking in asset management. Investors increasingly put their money into cheaper, passively managed index products, and out of actively managed, more expensive instruments.
Even the bigger fish in the pond are potential prey as the takeover of Swisscanto by Zuercher Kantonalbank showed in December.
People close to Aberdeen Switzerland said that the asset manager is on course and that Switzerland as a key market will be expanded.
