Ameriprise
Financial Services Inc. (NYSE:AMP) has dropped out of the race for American
International Group Inc.'s (NYSE:AIG) adviser group, according to a source close
to the situation.
The Minneapolis-based financial services company
was the only strategic bidder of four remaining prospective buyers. As
of last week, Ameriprise, along with private equity firms Clayton,
Dublier & Rice Inc., GTCR Golder Rauner LLC and Warburg Pincus LLC,
were expected to submit final bids at the end of March, as earlier
reported by The Daily Deal.
The adviser group consists of three
broker-dealers -- SagePoint Financial Inc. of Phoenix, FSC Securities
Corp. of Atlanta and New York-based Royal Alliance Associates Inc. The
three broker-dealers have combined client account assets of $91 billion
and 5,700 advisers, according to their Web sites, but their numbers
appear to be shrinking. Just a month ago, the three businesses had
6,600 advisers and $92 billion in assets. Maybe Ameriprise dropped out
in fear that a continued exodus of advisers will leave the buyer with a
fraction of what was initially for sale.
A price range could not
be ascertained, but a source does not expect bids to be north of $200
million. An AIG spokesman declined to comment, and an Ameriprise
spokesman did not return calls. - Michael Rudnick
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