Boston, MA 05/06/2014 (wallstreetpr) – The Bank of New York Mellon Corporation (NYSE:BK) in partnership with Goldman Sachs Inc. is looking for buyers as it seeks to offload its corporate trust arm, according to people with knowledge on the matter. The bank expects to fetch up to $2.5 billion from the unit normally used to process payments on debts.
BNY Mellon Following its Rivals
It is being reported that Bank of New York Mellon has already started contacting potential buyers and may start soliciting offers as early as in a months’ time. It is still in early stages to speculate the buyers who would be interested in the purchase considering the sale has not yet been made public.
According to the The Bank of New York Mellon Corporation (NYSE:BK)’s website, the corporate arm employs about 3,500 employees who service approximately $12 trillion in total outstanding debts from clients. The bank is opting to dispose of this unit amidst its rivals State Street Corp and Northern Trust Corp already opting out of the business completely.
BNY Selling Stakes in Hong Kong
This comes at a time that BNY Mellon has already filed with the SEC of its intentions to sell its stake in its Hong Kong based wing Hang Bank Ltd. The Bank expects the transaction to close in the third quarter of the year with the investment commanding a book value of $544 million.
The Bank of New York Mellon Corporation (NYSE:BK) has also confirmed it has completed the acquisition of previously announced HedgeMark International LLC. Financial terms of the transaction have not yet been disclosed with HedgeMark expected to be part of BNY Mellon’s Asset servicing business.
Bank of New York Mellon opted to buy the remaining 65% stake in HedgeMark having already managed 35% stake. Recent acquisition comes as BNY Mellon reported first quarter profit of $661 million compared to a net loss of $266 million reported for the same period last year.
