BNP Partners Receives Acquisition Overtures From Rival


Posted November 11, 2015 by bnppartners

BNP Partners confirms that it has received an offer from an industry competitor to acquire its wealth management business.

 
BNP Partners, the Shanghai, China headquartered broker-dealer confirms that it has received an offer from Beijing-headquartered China International Capital Corporation (CICC) to acquire its wealth and investment management business.

The firm, which is privately-owned by its principals and senior executives, is being offered 135 million yuan cash in return for its private client roster. The offer has been rejected by BNP Partners on the grounds that the deal would not be in the best interests of its clients.

The offer is one of a number of approaches being reported within the industry as players attempt to consolidate in the aftermath of the volatility in China’s mainland exchanges, the Shanghai and Shenzhen Composites.

“The severity of the turmoil caught quite a few wealth managers completely by surprise,” said Gerald E. Powers, Chief Investment Officer at BNP Partners. “We’ve heard unsubstantiated reports of some firms who had sought authorization from clients to temporarily suspend their risk limits in order to expose their capital to the never-ending stream of IPOs. Those clients are now nursing catastrophic losses,” added Powers.

The firm says it was not adversely affected by the turmoil and most of its clients are still positive for the year despite the volatility which saw both mainland indexes shed as much as 30% of their value in an 8 week period that began in mid-June.

“CICC is a very large and very competent player in China’s wealth management industry but there are a number of incompatibilities with our business model that we feel our clients, not to mention ourselves, would find insurmountable,” concluded Powers.

About BNP Partners:
At BNP Partners, they define effective wealth management as an overall strategy that seamlessly integrates their clients’ personal ROI (return-on-investment) aspirations with their investment management prowess.

Whilst today’s markets can often demonstrate the type of characteristics that have served to hamper the efforts of many traditional investment methodologies to secure the returns they once did, BNP Partners continue to secure exceptional returns for their esteemed clients utilizing a meticulously applied combination of those same traditional methods whilst diligently complementing them with new, pioneering techniques.
-- END ---
Share Facebook Twitter
Print Friendly and PDF DisclaimerReport Abuse
Contact Email [email protected]
Issued By Sean Nichols
Website http://www.bnppartners.com
Phone +85258083924
Business Address 1/F, Jinzhong Mansion,
98, Huaihai Middle Rd., Shanghai, 200021
Country China
Categories Business , Finance , Services
Tags bnp partners , china , ipo , wealth management
Last Updated November 11, 2015