PDFM set to be sold for pounds 1.8bn

UBS, THE Swiss bank, is looking to sell PDFM, its UK fund manager, in a deal worth up to pounds 1.8bn. Industry sources said the bank had already identified potential buyers for PDFM, and that an announcement would be made within the next couple of weeks.

A UBS spokeswoman confirmed that the board was reviewing the role of PDFM. She said: "We are reviewing a number of activities. PDFM is one of those. Selling is one of the options, but it is not the only one." The spokeswoman added that she expected the UBS board to come to a decision about PDFM "in July sometime".

The decision to sell PDFM is understood to be a direct consequence of the UBS/SBC merger. The two Swiss banks announced plans to merge back in December, and expect to start operating as a single bank - the "new" UBS - next month.

Reports of culture clashes between PDFM, run by maverick fund manager Tony Dye, and Brinson, SBC's Chicago-based asset management arm, prompted intense speculation about the future of PDFM.

PDFM is believed to have told UBS executives that it would rather be sold than be integrated with Brinson. UBS is now looking to sell the fund manager to a financial institution which could guarantee PDFM operational independence. A management buyout is thought unlikely.

Rumours about the identities of potential bidders were rifeyesterday. Speculation focused on the large US banks, in particular Goldman Sachs. Some analysts predicted a deal with one of the larger European banks could be on the cards.

John Leonard, banking analyst at Salomon Smith Barney, said: "ABN Amro has been interested in money managers from time to time, and Commerzbank has been looking as well. In the UK, Halifax has the money to spend as well as an interest in the area."

Sources said any deal would need to have the backing of the PDFM management.

Mr Dye, PDFM's chief investment officer declined to comment. Mr Dye achieved a degree of notoriety after PDFM took up a strong cash position at a time when stock markets were booming.

Fund managers are currently attracting heady stock market valuations, following the sale of Mercury Asset Management (MAM) to Merrill Lynch of the US for pounds 3.1bn.

One analyst, who declined to be named, said: "MAM was sold for around 3 per cent of its assets under management. If you applied a similar figure to PDFM, that gets you to pounds 1.8bn, although, to be frank, PDFM is unlikely to fetch that price. I would expect the price to be nearer to 2 per cent of assets under management [around pounds 1.2bn].

PROMOTED VIDEO
Arts and Entertainment
Characters in the new series are based on real people, say its creators, unlike Arya and Clegane the Dog in ‘Game of Thrones’
tv'The Last Kingdom' embraces politics, religion, warfare, courage, love and loyalty, say creators
News
peopleThe Game of Thrones author said speculation about his health and death was 'offensive'
News
Justin Bieber performing in Paris earlier this year
people
Arts and Entertainment
Martin Freeman and Lauren O'Neil in Jamie Lloyd's Richard III
theatreReview: The monarch's malign magnetism and diabolic effrontery aren’t felt
Arts and Entertainment
'Molecular Man +1+1+1' by Jonathan Borofsky at Yorkshire Sculpture park
tv
News
Glamour magazine hosts a yoga class with Yogalosophy author Mandy Ingber on June 10, 2013 in New York City.
newsFather Padraig O'Baoill said the exercise was 'unsavoury' in a weekly parish newsletter
Extras
indybest
News
people'She is unstoppable', says Jean Paul Gaultier at Paris show
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Sport
Alexis Sanchez and apparently his barber Carlos Moles in Barcelona today
football
Arts and Entertainment
Miley Cyrus has her magic LSD brain stolen in this crazy video produced with The Flaming Lips
video
Arts and Entertainment
In his own words: Oscar Wilde in 1882
theatreNew play by the Oscar Wilde's grandson reveals what the Irish wit said at his trials - and what they reveal about the man
News
people
Arts and Entertainment
Unless films such as Guardians of the Galaxy, pictured, can buck the trend, this summer could be the first in 13 years that not a single Hollywood blockbuster takes $300m
filmWith US films earning record-breaking amounts at the Chinese box office, Hollywood is more than happy to take its lead from its new-found Asian audience
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Head Of Compliance Policy - Global Bank

MARKET RATE: Real Staffing: A Global Banking organisation has some exciting gr...

Associate CXL Consultant

£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...

Associate CXL Consultant

£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...

Financial Planning Manager, Qual Accountant, £380

£300 - £380 per day: Orgtel: Financial Planning Manager, Banking , London, £30...

Day In a Page

The true Gaza back-story that the Israelis aren’t telling this week

The true Gaza back-story that the Israelis aren’t telling this week

A future Palestine state will have no borders and be an enclave within Israel, surrounded on all sides by Israeli-held territory, says Robert Fisk
A History of the First World War in 100 Moments: The German people demand an end to the fighting

A History of the First World War in 100 Moments

The German people demand an end to the fighting
New play by Oscar Wilde's grandson reveals what the Irish wit said at his trials

New play reveals what Oscar Wilde said at trials

For a century, what Wilde actually said at his trials was a mystery. But the recent discovery of shorthand notes changed that. Now his grandson Merlin Holland has turned them into a play
Can scientists save the world's sea life from

Can scientists save our sea life?

By the end of the century, the only living things left in our oceans could be plankton and jellyfish. Alex Renton meets the scientists who are trying to turn the tide
Richard III, Trafalgar Studios, review: Martin Freeman gives highly intelligent performance

Richard III review

Martin Freeman’s psychotic monarch is big on mockery but wanting in malice
Hollywood targets Asian audiences as US films enjoy record-breaking run at Chinese box office

Hollywood targets Asian audiences

The world's second biggest movie market is fast becoming the Hollywood studios' most crucial
Grindr founder Joel Simkhai: 'I've found love on my dating app - and my mum keeps trying to hook me up!'

Grindr founder Joel Simkhai: 'I've found love on my dating app'

Five years on from its launch and Grindr is the world's most popular dating app for gay men. Its founder Joel Simkhai answers his critics, describes his isolation as a child
Autocorrect has its uses but it can go rogue with embarrassing results - so is it time to ditch it?

Is it time to ditch autocorrect?

Matthew J X Malady persuaded friends to message manually instead, but failed to factor in fat fingers and drunk texting
10 best girls' summer dresses

Frock chick: 10 best girls' summer dresses

Get them ready for the holidays with these cool and pretty options 
Westminster’s dark secret: Adultery, homosexuality, sadomasochism and abuse of children were all seemingly lumped together

Westminster’s dark secret

Adultery, homosexuality, sadomasochism and abuse of children were all seemingly lumped together
A History of the First World War in 100 Moments: Dulce et decorum est - a life cut short for a poet whose work achieved immortality

A History of the First World War in 100 Moments

Dulce et decorum est: a life cut short for a poet whose work achieved immortality
Google tells popular music website to censor album cover art in 'sexually explicit content' ban

Naked censorship?

The strange case of Google, the music website and the nudity take-down requests
Howzat! 8 best cricket bats

Howzat! 8 best cricket bats

As England take on India at Trent Bridge, here is our pick of the high-performing bats to help you up your run-count this summer 
Brazil vs Germany World Cup 2014 comment: David Luiz falls from leader figure to symbol of national humiliation

David Luiz falls from leader figure to symbol of national humiliation

Captain appears to give up as shocking 7-1 World Cup semi-final defeat threatens ramifications in Brazil