Swiss Life deal values AWD at €1.1bn by Finance News Bulletin

Published: 04/12/07

All times are London time look for News in the FTcom siteSearchSearch Quotes in the FTcom siteQuotesCOMPANIES Financial servicesBreadcrumb follow navigation:FT Home > Companies > By sector > Financial servicesServicesSwiss existence surprised investors on Monday with plans to pay money for AWD, the dynamic German financial advisory group, firm on the heels of big disposals in recent weeksThe move marks a novel strategic direction for the Swiss life and pensions collection, which should raise about SFr4

1bn (€248bn, $364bn) after advertising its Banca del Gottardo private banking unit and cover subsidiaries in the Netherlands and BelgiumRather than an acquisitions, many analysts had predict Swiss existence would announce further share buybacks on top of the SFr2

5bn programme unveiled with its benefit sales, amid expectations that the group would gradually transform into a dull but dependable yield storeInstead, the company is offering €30 a share to buy AWD, valuing the German financial services collection at €112bn ($164bn)

The offer will only be launched in January, after necessary German regulatory clearances, but Rolf Dörig, Swiss Life’s chief decision-making, said he was confident about the outcome Further details may come out at an investors’ day in Zurich on TuesdaySwiss Life is not looking for full control and has not set a minimum ownership threshold, to emphasise AWD’s continuing self-government as a monetary adviser The group employs more than 6,000 advisers and has secured physically powerful or leading positions in 10 European markets including its home base of Germany

Carsten Maschmeyer, AWD’s creator and chief executive, supposed his family had committed 20 per cent of its 30 per cent stake to Swiss existence, with an eventual long-term option over the rest Swiss Life, meanwhile, has secured about 55 per cent of AWD through split purchases and options, giving it a guaranteed stake of about 35 per centBoth executives stressed the benefits of the deal, with AWD providing Swiss Life with a new stage to put up for sale its products via a big independent network of advisers

AWD is particularly strong in Germany and Switzerland, and is also present in many other markets, counting Austria and middle and eastern EuropeFor AWD, which has been courted by various monetary services groups, the deal provides access to a sold and reliable partner at a time of rising instability in financial marketsMr Maschmeyer denied the transaction had approach because of fears about the prospect of AWD, whose share price closed at €2293 last Friday

He supposed the Hanover-based company was heading for record sales and in service profits this year, and meant to overtake DBAG as Germany’s top financial adviser“We had a lot of deliberations with other partners Swiss Life is the best guarantee for our long term self-governing There is no domination agreement, these are totally truthful and reliable people”, he supposed

Swiss Life was advised by Credit Suisse and destroy by fire Corporate Finance, a boutique run by one of the sons of Rainer Gut, the veteran Swiss financier Copyright The monetary Times Limited 2007Swiss Life in €15bn disposal - Nov-19Swiss existence sells unit to Generali - Nov-07Swiss existence sells private bank for SFr186bn - Nov-07Swiss Life first half mesh profits jump 21% - Sep-04Switzerland in bid to recover financial edge - Sep-11More from this sectorBlogsBrussels BlogCharles PretzlikClive CrookDear LucyEconomists’ ForumEnergy FilterJohn GapperGideon RachmanTech BlogThe in secret EconomistWestminster BlogWillem Buiter’s MavereconRegional pagesLatin American agendaChinaIndiaBrusselsInteractivePodcastsDebates & pollsAsk the expertMarkets Q&AJobs and classifiedsBusiness for saleContracts & tendersJobs Search kind your search criteria below:* Minimum holdup 15 minutesAll times are London timeFT HomeSite mapContact usHelpAdvertise with the FTMedia centreStudent offersFT ConferencesFT Research CentreFT SyndicationCorporate subscriptionsFT GroupPartner sites: Chinese FT

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