We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Societe Generale (SCGLY) Might Sell Lyxor to Amundi or State Street
Read MoreHide Full Article
After targeting bids from several firms within Europe and the United States for divesting its asset management business, Lyxor; Societe Generale (SCGLY - Free Report) is finally in talks with State Street (STT - Free Report) and Amundi, according to Reuters.
With a view to manage finances after incurring huge losses in the first two quarters of 2020 because of the dismal performance of its equities derivatives business, Societe Generale has been preparing to divest Lyxor for the past several months.
Notably, Lyxor is the third-largest provider of exchange-traded funds (“ETFs”) in Europe and has nearly €150 billion of assets under management.
In September 2020, Societe Generale announced that it has given Citigroup (C - Free Report) the responsibility to supervise the sale of Lyxor.
Firms like BNP Paribas SA, JPMorgan (JPM - Free Report) and Deutsche Bank’s DWS had been expressing keen interest in buying Lyxor.
However, because of valuation issues, these firms have now stepped back and Amundi and State Street are the only bidders left who are contending with each other.
Per sources, Lyxor is being valued at half of its target price of €1 billion. Also, bidders are willing to offer only up to €400-500 million because of growth challenges amid the coronavirus-induced crisis.
Also, one of the sources said that Amundi can be viewed as the natural buyer for Lyxor.
Other Restructuring Efforts by the Firm to Improve Financials
Last year, Societe Generale emerged with the plan of reducing costs by about €450 million annually. The plan relied on the company’s move of combining French retail operations with its Credit du Nord subsidiary to boost profitability.
Also, after witnessing losses in two consecutive quarters, the company’s CEO, Frederic Oudea, reshuffled top management positions. Oudea wants to reduce risk and, hence, is shifting toward simpler products. The redundancies are part of Oudea’s plan to stop trading in complex structured equities products.
Over the past six months, shares of Societe Generale have gained 96.4% compared with 48.1% growth recorded by the industry it belongs to.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Societe Generale (SCGLY) Might Sell Lyxor to Amundi or State Street
After targeting bids from several firms within Europe and the United States for divesting its asset management business, Lyxor; Societe Generale (SCGLY - Free Report) is finally in talks with State Street (STT - Free Report) and Amundi, according to Reuters.
With a view to manage finances after incurring huge losses in the first two quarters of 2020 because of the dismal performance of its equities derivatives business, Societe Generale has been preparing to divest Lyxor for the past several months.
Notably, Lyxor is the third-largest provider of exchange-traded funds (“ETFs”) in Europe and has nearly €150 billion of assets under management.
In September 2020, Societe Generale announced that it has given Citigroup (C - Free Report) the responsibility to supervise the sale of Lyxor.
Firms like BNP Paribas SA, JPMorgan (JPM - Free Report) and Deutsche Bank’s DWS had been expressing keen interest in buying Lyxor.
However, because of valuation issues, these firms have now stepped back and Amundi and State Street are the only bidders left who are contending with each other.
Per sources, Lyxor is being valued at half of its target price of €1 billion. Also, bidders are willing to offer only up to €400-500 million because of growth challenges amid the coronavirus-induced crisis.
Also, one of the sources said that Amundi can be viewed as the natural buyer for Lyxor.
Other Restructuring Efforts by the Firm to Improve Financials
Last year, Societe Generale emerged with the plan of reducing costs by about €450 million annually. The plan relied on the company’s move of combining French retail operations with its Credit du Nord subsidiary to boost profitability.
Also, after witnessing losses in two consecutive quarters, the company’s CEO, Frederic Oudea, reshuffled top management positions. Oudea wants to reduce risk and, hence, is shifting toward simpler products. The redundancies are part of Oudea’s plan to stop trading in complex structured equities products.
Over the past six months, shares of Societe Generale have gained 96.4% compared with 48.1% growth recorded by the industry it belongs to.
Societe Generale currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>