As Belgium’s KBC reaches the mid-point of a multi-year plan to shed some of its more risky assets, the company has canceled plans to sell its private equity business after being unable to secure high enough bids for the portfolio. KBC had agreed to shed some €39 billion in assets as part of a €7 billion state support package secured in 2008.
The company sold its private banking assets to India’s Hinduja for €1.35 billion and as of last month, had reached 44% of its asset reduction goals.
Bids for KBC Private Equity however, were too low to get a deal done. AXA Private Equity was reportedly working on a joint bid with Belgium’s Sofina but the two came up short. KBC stock declined nearly 4% on news that the sale plans had been scrapped.
June 14, 2010
Rumors & Speculation