Even as the last-bidder-standing in the Pioneer Investments
] auction is working on financing its bid, Pioneer itself is fighting two possible defections.
| Yves Perrier|
Chief Executive Officer
French asset manager Amundi
plans to raise 1.5 billion to 2 billion euros ($1.6 billion to $2.15 billion) in early 2017 by issuing new stock, all to help pay for the Pioneer deal, unnamed sources tell the Financial Times
. The price tag on that deal, the paper estimates, could reach 3.5 billion euros ($3.74 billion) if Pioneer's 325 million euros of cash are included. On Monday Amundi and UniCredit
Italian bank that's selling Pioneer), concisely confirmed
that "they entered into exclusive negotiations" about the deal. [See MFWire's living timeline
of the Pioneer auction for more details and history.]
Meanwhile, the Irish Times
, the FT
, Fund Strategy
, and Financial News
all report that Pioneer has informed clients that two of its key PMs in Europe have been suspended. Tanguy Le Saout
, head of European fixed income, and Ali Chabaane
, head of portfolio construction, have reportedly been planning to leave and create a new asset management shop.
"People are looking at what else is around. The big fear is a lot of jobs will be cut after any merger takes place," an ex-Pioneer employee tells the FT
Indeed, the FT
notes that Pioneer staff worry about "overlapping functions" with the team at Amundi. And the FT
expects Amundi to "keep Pioneer on a tight leash" after the Amundi CFO promised earlier this fall to "stick to our financial discipline."
Neil Anderson, Managing Editor
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