How much can WF get for WFAM unit? IMO I would estimate Between $5-7 Billion. Morgan just paid $7 Billion for Eaton Vance who have around $500 Billion Asset Management division. WF has between $500 and $600 Billion under AM.
7 replies (most recent on top)
I'm thinking closer to 4-4.5 billion. Legg Mason had about 60% more AUM than WFAM. I know FT assumed debt, so that changes things a bit. We'll see how this plays out in the next few weeks.
D: @bek+17C5J1ba. So, 4.5 Billion in cash plus taking on 2 Billion in Debt which equals to around 6.5 Billion total. Like I said, WF can get anywhere from 6-7 Billion for WFAM division.
Take a look at the recent Franklin/Legg Mason deal to get a ballpark figure:
Franklin Templeton is buying rival Legg Mason in a move that will create the world’s sixth largest asset manager with a total of $1.49tn in assets under management. As of the end of 2019, Franklin had $698bn, while Legg had $804bn.
Franklin is buying all of Legg Mason and its affiliates, bar one (which we will come back to shortly), and taking on Legg’s $2bn of debt.
It will pay $4.5bn for all this, in an all-cash deal which values Legg at $50 a share, a 23% premium on the firm’s share price from Friday, February 14. The deal will be funded by existing balance sheet cash and close by the third quarter of this year
Yes, over 3 Billion doesn’t mean it’s 3 Billion. I would think if comparing the Eaton Vance sale to Morgan that the WFAM sale would be around 6 to 7 Billion
I saw 3 billion in an article
The article I read said over 3bln
Per the new article on google news, many of the people we have reached out to have declined the offer. They want to buy parts but not the whole.