State Street Corp. is exploring options for its asset management business, including a merger with a competitor, as it seeks to gain scale, people familiar with the matter said.
The Boston-based firm has been informally working with an adviser to review strategic alternatives for the unit, known as State Street Global Advisors, according to the people. It has evaluated potential combinations with the asset management operations of rivals including Invesco and UBS Group, the people said, asking not to be identified because the information is private.
While those discussions didn't lead to an agreement, State Street continues to study potential deals, the people said. Such combinations often stumble over the ownership split and valuation differences.
Shares of State Street rose as much as 4.7% Friday, reversing earlier losses. They were up 3.8% at 2:33 p.m. in New York trading, giving the company a market value of $26.3 billion.
No final decisions have been made, and there's no certainty the deliberations will lead to a transaction, the people said. Representatives for State Street, Invesco and UBS declined to comment.