Money Manager Said to Have Nixed ABN Amro Offer

ABN Amro North America recently offered to buy money manager Weiss, Peck & Greer Investments but was spurned, according to industry sources.

The U.S. unit of Dutch-owned ABN Amro was prepared to fork over between $85 million and $100 million for Weiss, Peck, these sources said.

New York-based Weiss Peck has $12.6 billion of assets under management, including $1.97 billion in mutual fund assets, according to Financial Research Corp.

A Weiss, Peck spokeswoman referred to ABN Amro's offer as "just another inquiry." The firm, she said, "receives inquiries like this every day."

ABN Amro looked at and bid on a number of asset management firms in the last few years, according to industry insiders. Among those companies are Boatmen's Bancshares, St. Louis, which has a large asset management business, and mutual fund company Templeton, Galbraith & Hansberger Ltd.

"They have an increasing interest in acquiring wealthy individuals and institutions" for their client base, said Milton Walters, president at Tri River Capital, a New York investment banking boutique. Weiss, Peck would have fit nicely, he said.

ABN Amro approached Weiss, Peck while the ink was still wet on its agreement last month to buy Standard Federal Bancorp., Troy, Mich., for $1.9 billion in cash. After it signed that deal, many observers thought ABN Amro had changed directions and had stopped shopping for a money manager, said Geoffrey H. Bobroff, a mutual fund consultant in East Greenwich, R.I.

Its interest in Weiss, Peck, however, shows that it is still on the prowl. The asset management firm, Mr. Bobroff added, would have worked well with ABN Amro's acquisition of Chicago Corp., a brokerage that serves institutional clients.

Many banks are looking for a money manager to bring in fee income and offer a diversified product mix to customers, Mr. Bobroff said.

Weiss, Peck manages both institutional and retail funds, sub-advises nine outside mutual funds, and provides clearing services for 50 small brokerages, investment firms and foreign banks. Lloyds America Securities Corp., a division of Lloyds Merchant Bank, London, owns 22% of Weiss, Peck as a limited partner.

A spokeswoman for ABN Amro in Chicago declined to comment.

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