Dexia Asset Management, the fund management subsidiary of Dexia SA, will not be part of the proposed Belgian government’s takeover of Dexia Bank Belgium, the company announced Monday.
The Belgian government reached an agreement late Sunday to acquire Dexia SA’s Belgium holdings for €4 billion ($5.47 billion) in a plan to break up the financial institution, which suffered from severe funding problems earlier this month as the eurozone crisis worsened.
Dexia SA’s Luxembourg subsidiary, Dexia Banque Internationale a Luxembourg SA, will be sold to a group of investors that includes the Luxembourg government and Qatar’s royal family. French officials are also working on a solution for the French portion of Dexia SA through state-owned financial institutions Caisse des Depots et Consignations and La Banque Postale, according to the announcement.
“Dexia Asset Management will not be part of the deal involving Dexia Bank Belgium or Dexia BIL and will remain within Dexia SA,” said Thierry Martiny, spokesman for Dexia. He declined to provide further information about the future of the business.
According to the news release, the sale “will be finalized in the very near future.”
Banking analysts say it’s unclear what will happen to the asset management subsidiary. One likely outcome is that authorities will seek a buyer for Dexia AM, which had €86.4 billion in assets under management as of Dec. 31.
One analyst added, “I also don’t think (Dexia AM) is the most pressing concern for the government right now. It’s preserving liquidity and creating a ‘bad’ bank” to hold Dexia’s troubled assets.”