State Street emerges as favourite to buy BIAM

INTERNATIONAL financial services company State Street is understood to be interested in acquiring Bank of Ireland Asset Management (BIAM), although an execution of the deal is not anticipated in the short-term.

Since its EU restructuring plan was finalised, Bank of Ireland has been looking to dispose of a number of assets; including New Ireland Assurance and ICS Building Society.

BIAM, which has assets of around €25 billion but has also lost its market leading position to Irish Life & Permanent, is likely to form part of that sales process, with management announcing, at the group’s recent interim results presentation, approaches had been made for the asset from a number of sources.

One of those thought to have been interested, Australian investment bank Macquarie, now seems to have pulled out of the process.

Although a spokesperson for State Street, which already has a sizeable presence in Ireland, was saying nothing yesterday – the bank has a policy of not commenting on media speculation – it is thought that the Boston-headquartered asset management specialist is interested and is being viewed as favourite to take over the Bank of Ireland asset, given its standing here and the two companies’ long-standing close working relationship.

One industry commentator suggested that while State Street would be viewed as a logical favourite to land the deal, there are still other players in the mix and no outcome should be expected in the immediate future.

Bank of Ireland also declined to comment on the sales process yesterday.

State Street employs more than 2,000 people in its Irish operations – which cover facilities in Dublin, Kilkenny, Naas and Drogheda.

The company underlined its long-term commitment to Ireland by opening a new Irish headquarters in Dublin in March.

Approximately 1,100 of the company’s employees are filling the new facility, which houses State Street’s global services and alternative investment solutions divisions.