Commerzbank delays Jupiter sale

GERMANY'S Commerzbank has quietly shelved plans to sell Jupiter, its British fund management arm. The Frankfurt-based bank bought Jupiter in the 1990s for £670m in a deal which netted a personal fortune of £170m for its colourful founder John Duffield.

After an acrimonious split with Duffield, the group is now run by Edward Bonham Carter, brother of film star Helena. Its profits have fallen dramatically from £172m in 1999 to just £20.9m last year.

Insiders say US venture capitalist Kohlberg Kravis Roberts tabled a bid of around £300m, but Commerzbank considered it too low. Executives from Frankfurt are believed to be visiting Jupiter's London headquarters this week to inform staff of the lack of progress on the sale.

Commerzbank refused to comment. The word in German banking circles is that it wants a much higher price for Jupiter and will wait for stock markets to pick up in the hope of getting more.

Failing to line up a buyer is a further setback for Commerzbank, which earlier this month issued a thinly-veiled profits warning. It reported a 90% fall in profits for the second quarter to just £16m, and said it would not be able to meet its full-year targets unless markets improve.

Duffield is keen to buy back his old firm - which he set up in 1985 with just a desk and a secretary - so he can merge it with his latest venture, New Star. He has said he will offer a premium to other bidders.

But the maverick moneyman, who two years ago won a £5m out-of-court settlement after being sacked by Commerzbank, is persona non grata with his former bosses. They have ruled out accepting any bid from him.