Bank of America is the most likely buyer for CitiStreet, according to sources familiar with the matter. The record-keeping and administrative services firm co-owned by Citigroup Inc. and State Street Corp., which other sources said earlier this week is for sale, is valued at $500 million.
Bank of America does not have a record-keeping arm, and this business might fit nicely for them, one source said. BofA executives want to be a player in this market, and they want to grow the business quickly, the source said.
A another source in the record-keeping industry said the likely buyer would have a strong money management background and no record-keeping business to speak of, eliminating competitors Fidelity Investments, T. Rowe Price RetiremenVanguard Groups and Vanguard Group.
In a word, if I were Bank of America, Id be all over this. And they are, the source said.
Bill Carey, managing director of business retirement solutions at Bank of America, and John Yiannacopoulos, spokesman for BofA, declined to comment. Michael Hanretta and Michael Bezdek, spokesmen for Citigroup and CitiStreet, respectively, also declined to comment. Calls to officials at State Street were referred to CitiStreet.