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State Street Is Close To Acquiring GE's Asset Management Business, Report Says

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According to a report by Reuters, State Street Corp (NYSE: STT) is in talks to acquire General Electric Company (NYSE: GE)'s $115 billion asset management business.

Reuters, citing "people familiar with the matter," reported that State Street's bid may have been superior to other bids from other financial groups, including Goldman Sachs Group Inc (NYSE: GS). As such, State Street is in the final stages of reaching a final agreement with General Electric.

Reuters' sources suggested that the value of General Electric's asset management business could be as much as $500 million.

"We have had a very high level of interest from potential acquirers of GE Asset Management (GEAM) in the market and the deal is progressing well," General Electric said in a statement to Reuters. "At this time, there is no public announcement about a buyer. Our original deal timeline remains on track, and we still expect to conclude our strategic evaluation this quarter."

Shares of State Street were trading lower by 0.8 percent at $54.67, while shares of General Electric were lower by 1.68 percent at $28.69 early Friday afternoon.

 

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Posted-In: Asset Management Business Asset Managers ReutersNews Rumors Asset Sales