Private equity firms may be circling DST Systems
, but that doesn't mean that the mutual fund back-office provider is ready to sell. Reuters
' Nadia Damouni reports
that RDG Capital
chief Russell Glass
and at least one other private equity firm (if not more) approached DST with deal offers of around $65 per share (valuing the firm at $3 billion) in recent months, though DST rejected all the offers.
DST is also a part-owner of Boston Financial Data Services
. BFDS is a joint-venture with State Street
Reuters talked with Glass himself, as well as an at least one off-the-record source.
Those offers are 34.5 percent above DST's Wednesday close price of $48.31 per share, and 21.7 percent below DST's $83 per share price from 2007, prior to the financial crisis. Glass wants DST to at least consider a sale to someone.
"We would like the company to hire an investment banking firm to consider strategic alternatives, including a sale or auction," Glass reportedly told Reuters.
Meanwhile, DST's top shareholder (who holds 20 percent of the company), George Argyros
insisted to Reuters that he is "a long-term holder."
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