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Bank of America To Sell Columbia Division To Ameriprise Financial |
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Written by David Horn
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(CHARLOTTE) -- Bank of America Corporation has signed an agreement to sell the long-term asset management business of Columbia Management to Ameriprise Financial, Inc. The exact price tag for the deal is still subject to some adjustment but will be approximately $1 billion.
The long-term asset management business had approximately $165 billion in equity and fixed-income assets under management. The total consideration to be paid to Bank of America is expected to be between $900 million and $1.2 billion based on net asset flows and investor consents in the period leading up to closing. he long-term asset management business had approximately $165 billion in equity and fixed-income assets under management. The total consideration to be paid to Bank of America is expected to be between $900 million and $1.2 billion based on net asset flows and investor consents in the period leading up to closing. "The acquisition of Merrill Lynch provided an opportunity to look at our entire portfolio of businesses with an eye toward strengthening our capital position while ensuring that we continue to offer the broadest possible solutions to our customers and clients as one of the world's leading financial services firms," said Joe Price, chief financial officer of Bank of America. "We're pleased to reach an agreement with Ameriprise that is consistent with that goal." The transaction is expected to close in the spring of 2010. The deal is subject to regulatory approvals and other conditions. |
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Last Updated ( Wednesday, 30 September 2009 )
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