Two months after The MFWire
first broke the news that Rydex Investments
was on the auction block (see, "Ryding to Auction?,"
April 2, 2007), other news outlets have picked up on the sale negotiations.
ran a news story late Friday afternoon that the Rockville, Maryland-based asset manager was close to sealing a deal to sell itself. That story was, in turn, picked up by Ignites
and Fierce Finance
also published a report on the sale negotiations on Monday.
According to TheStreet.com
, the possible price tag for Rydex falls within the $800 million to $1 billion range, and Rydex could end up in the hands of either E*Trade
However, sources have told The MFWire
that Rydex could be sold for $400 million to $600 million. Another source claimed that the winning bidder will acquire a controlling stake for less than $200 million. While Invesco took a look at buying Rydex, it is no longer in the running for the deal, according to MFWire sources
. They instead pointed to Security Benefit Life
as the leading bidder, with IXIS
and Man Group
being the other finalists.
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