Would-be purchasers line up for Commerzbank's U.K.-based wealth manager. London-based merchant bank Close Brothers has made a bid for Kleinwort Benson, a private bank of Germany's Commerzbank, according to a report in the U.K. newspaper Sunday Times.

Close is one of a large number suitors for London-based Kleinwort Benson. The private bank, whose roots stretchy back to the 1850s, garnered bids from more than 20 financial-service companies and up to 10 private-equity firms interested in backing an management buyout, according to reports, say reports.

Musical chairs

Analysts give Kleinwort Benson a book value of about $500 million.

Commerzbank has been disposing of non-German assets in compliance with European Union regulations for taking money from the German public coffer last year to bolster its finances. The EU has forced it to sell other holdings -- including Munich-based Bank Reuschel & Co. -- to comply with conditions around s its purchase of Frankfurt-based Dresdner Bank from German insurance giant Allianz.

Commerzbank recently sold its Swiss arm to Vontobel Group, and it's getting set to sell Dresdner's Swiss-based business to Liechtenstein-based LGT Group.

Kleinwort Benson used to be a subsidiary of Dresdner Bank.

Despite all these mandated sales, Kleinwort Benson CEO Robert Taylor recently told FWR's sister publication WealthBriefing that the sale of his firm won't be rushed. The firm will look carefully at potential suitors to ensure it builds on its strengths in areas such as specialist investment and fiduciary services, he said. -FWR

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