Societe Generale on Wednesday denied a report that the bank was considering the sale of U.S. money manager unit TCW Group.
“Societe Generale's plans for TCW have not changed,” said a statement from the French bank provided by TCW spokesman Peter Viles.
“TCW is not for sale and we continue to believe that TCW is on a trajectory for strong and sustained growth. Societe Generale Group fully supports (CEO) Marc Stern and the board of directors of TCW in the firm's development strategy. As has been said previously, the firm is on track for an IPO in the next two to three years.”
Mr. Viles said TCW would have no direct comment.
The issue of TCW's ownership came out during the trial earlier this year between TCW and its one-time star money manager Jeffrey Gundlach. TCW had charged Mr. Gundlach with taking trade secrets; Mr. Gundlach in turn sued TCW seeking lost wages. The jury awarded $66.7 million in unpaid wages to be divvied up among Mr. Gundlach and three other former TCW executives. But the jury also found Mr. Gundlach stole trade secrets from TCW, breached his fiduciary duty to TCW and interfered with TCW client contacts.
Top former TCW officials had testified at the trial that they were rebuffed by Societe Generale officials in 2008 after they tried to engineer a management buyout. Mr. Gundlach also testified about his unsuccessful efforts to buy the firm.
A Bloomberg News report earlier Wednesday said Societe Generale is weighing options for the possible sale of TCW, including an MBO, citing people with knowledge of the situation.
TCW had $114 billion in assets under management as of Sept. 30.