|Bid||23.25 x 1100|
|Ask||23.38 x 38800|
|Day's Range||22.61 - 23.32|
|52 Week Range||22.00 - 54.75|
|Beta (5Y Monthly)||1.07|
|PE Ratio (TTM)||61.02|
|Forward Dividend & Yield||0.40 (1.76%)|
|Ex-Dividend Date||Aug 06, 2020|
|1y Target Est||N/A|
Wall Street's focus remains on the stimulus stalemate in Washington; Intel sinks after a surprise drop in data center sales; Gilead Sciences' remdesivir gets FDA approval as a Covid-19 treatment.
Wells Fargo & Co (NYSE: WFC) is in plans to delink its asset management business and is currently holding talks with private equity firms and peers in the asset management space, according to Reuters. Based on initial estimates, the deal could be valued at over $3 billion.In the third-quarter earnings call, CEO Charles Scharf hinted that the bank would exit some of its non-core business. However, there have been no official comments on the proposed sale of its asset management unit.What Happened: Wells Fargo expects to receive bids for its asset management business unit sometime this month, according to a Bloomberg report.Wells Fargo's asset management division held around $607 billion at the end of September, an increase compared to $578 billion in its managed portfolio at the end of June.Since 2016, the bank is working to control costs and Scharf is aiming for $10 billion in annual savings over the long term, Reuters noted.Why Does It Matter: The asset management space is gradually consolidating through mergers, acquisitions, and divestments.Earlier this month, Morgan Stanley (NYSE: MS) acquired Eaton Vance Corp (NYSE: EV) -- an investment management company with $500 billion assets under management. The cash and stock deal was valued at $7 billion.On Oct. 2, Trian Fund Management L.P bought stakes in Invesco Ltd (NYSE: IVZ) and Janus Henderson Group PLC (NYSE: JHG) for a collective investment of $900 million. Trian's broader strategy revolves around the notion of introducing a new asset management company that can take on industry bigwigs like BlackRock Inc (NYSE: BLK).Price Action: WFC stock gained 2.42% on Thursday to close at $23.25.Photo courtesy: Ken Teegardin via FlickrSee more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Pioneer Extends Permian Basin Dominance With .6B Parsley Energy Acquisition Deal * Chipmaker Allegro MicroSystems Files For Nasdaq IPO(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The potential deal would illustrate how Scharf is looking at drastic moves, beyond cost cuts, as he seeks to turn Wells Fargo around following a years-old sales practices scandal. Wells Fargo's asset management arm, which managed $578 billion on behalf of customers as of the end of June, could fetch more than $3 billion in a sale, two of the sources said. The San Francisco-based bank has discussed a potential deal with asset management companies and private equity firms, according to the sources, who cautioned that a divestment is not certain and asked not to be identified because the matter is confidential.