Wachovia buys European Credit Management stake

11 January 2007

The US's fourth largest bank, Wachovia Corporation, has announced that its Evergreen Investments subsidiary will buy a majority stake in European Credit Management - the London-based asset management firm.

The deal, made for an undisclosed price, reaffirms Wachovia's commitment to the asset management industry, with the acquisition expected to add around $26 billion of fixed-income assets under management to Evergreen's business.

As a result, Evergreen's assets under management will grow to around $280 billion, Wachovia said, and the deal will strengthen the subsidiary's existing presence in the London market.

In an interview with Reuters, Wachovia's head of capital management David Carroll said that his bank hoped to benefit from pension funds' demand for fixed-income investments.

"The world is awash in liquidity right now, searching for a home," he told the news agency.

"At the same time, there is more and more demand for certainty about how pension funds will meet their obligations."

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