In Brief: NationsBank to Sell Asset-Managing Unit

NationsBank Corp. announced Thursday that it plans to sell ASB Capital Management, a Washington-based unit that manages $7 billion of assets for institutional investors.

The banking company said it had concluded that the unit, which NationsBank acquired in 1993 as part of its purchase of MNC Financial Corp., doesn't fit in with its other asset-management businesses.

NationsBank's main asset-management arm is TradeStreet Investment Associates Inc., which managed $35 billion at yearend.

"It's time for ASB to have another owner who can support its independence and autonomy," John Munce, NationsBank's group executive for investment management, said in a prepared statement.

Based on its asset size, ASB could fetch around $350 million, said William Houlihan, an investment banker at Keefe Bruyette & Woods, New York.

"NationsBank may be saying another owner who is in the business can give them the scale they couldn't give them and could help (ASB) grow the business," Mr. Houlihan added.

- Juliana Ratner

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