Belgian bancassurer KBC said it still intends to sell its Luxembourg private banking subsidiary KBL as a whole after German newspaper Handelsblatt reported on Friday that German UniCredit subsidiary Hypovereinsbank had shown an interest in Merck Finck & Co, one of the ten fund managers under KBL's umbrella.
UniCredit CEO Theodor Weimer said in the German newspaper he will study 'everything' on offer, including Merck Finck. However, KBC spokeswoman Viviane Huybrecht maintained KBC has repeatedly said it intends to sell KBL as a whole. "We do not change our mind every week," she said.
The planned sale of KBL is a cornerstone of the downsizing KBC needs to implement to meet the European Commission's conditions for the support the bancassurer received from the Belgian government during the credit crisis. The recently planned sale of KBL to Indian group Hinduja for €1.35bn fell through, because the Luxembourg regulator refused to approve the deal.
Luxembourg-based KBL European Private Bankers comprises a number of fund managers, including Puilaetco Dewaay in Belgium, Theodoor Gilissen Bankiers in the Netherlands, Merck Finck & Co in Germany and Brown Shipley & Co in the UK. There are also offices in Switzerland, France, Monaco, Poland and Spain.
KBL regularly launches structured products aimed at private investors in Luxembourg. The bank has two Floored & Capped Bonus Notes linked to the Libor and Euribor in their subscription period. The 2.5-year medium term notes are issued via KBC Ifima and will be listed on the Luxembourg Stock Exchange.
These products are available on the Offshore & Other database.