French bank may snap up Jupiter

ACQUISITIVE French bank BNP Paribas is in the frame to bid for Jupiter, the asset management firm put up for sale by German owner Commerzbank. BNP Paribas has £5bn to spend in the next three years and is looking to buy in Britain and the rest of Europe.

Baudoin Prot, chief operating officer of BNP Paribas, said last week he was looking for a medium-size, mainly retail asset management business. He said the UK, alongside Germany and Italy, was at the top of his buying agenda. 'We would love to grow, particularly in Europe, and we will not go for big acquisitions in the US,' he told Financial Mail.

BNP Paribas Asset Management has about £150bn in funds under management across Europe - about 70% from retail investors. It employs 35 UK staff.

Insiders say BNP Paribas is looking at Jupiter, which is easily within its budget. Jupiter, managing £11bn for UK investors, is on the market for £500m to £600m, though City sources believe that Commerzbankmay have to settle-for less. US investment bank Goldman Sachs was hired by Commerzbank in February to sell Jupiter. Goldman is believed to be sending details of the sale to possible bidders this week.

But BNP Paribas could face competition from US fund manager LeggMason, which has about £120bn of assets under management. It would probably pursue a takeover through its UKbased subsidiary LeggMason Investors, run by Rebecca Thomas. Thomas, one of few female fund management heads, looks after £1.5bn in funds for individual investors in Britain.

But she is keen to build the business. She tried and failed to buy Foreign & Colonial 18 months ago, eventually losing out to the pan-European investment group Eureko. Sources close to Jupiter said the firm's management had received indications of interest, but was not talking seriously to anyone or considering a firm offer.