Deutsche Bank, Prudential, HSBC in race for Zurich Fin takeover

Mumbai: Deutsche Bank, Prudential Financial Group of the US and Hongkong & Shanghai Banking Corporation (HSBC) have emerged as front runners for the takeover of the assets of Zurich Financial Group in India.

The UK-based Standard Chartered Bank is also believed to have expressed interest in acquiring the assets of Zurich India, sources close to the development said.

Zurich operates in India through Zurich Asset Management Company (India) Pvt Ltd, which has assets worth over Rs 4,000 crore. Many of the fund houses which could not get short-listed for acquiring the assets of Alliance Capital Mutual Fund are believed to have put their bids for Zurich India, it is learnt.

The bidders for the acquisition of Alliance Capital were short-listed in early January 2003 and reports hint that HDFC Mutual is in the final stage to acquire Alliance. According to sources five bidders were short-listed for the stake in Alliance Capital besides HDFC Mutual, HSBC Asset Management, AIG, Sun F&C and Alliance's current chief investment officer, Sameer Arora.

Zurich India, which managed around Rs 4,183-crore assets in India as of 31 December 2002, is a sound performer and many of its schemes have been among the top performers. The group's decision to quit India stems mainly from the losses suffered by it globally and a change in its focus from India to the western world.

Recently, Zurich initiated a move to buy out the Raymond group's 24.03-per cent stake in its Indian entity and the 0.96-per cent stake held by JK Investo Trade India and 0.01-per cent held by S V Prasad, who is the chief of the Indian operations.

This takes its stake to 100 per cent in Zurich India. Sources add that Deutsche Bank, which is very keen to acquire Zurich India's assets, has mobilised around Rs 400 crore through its recently launched four mutual fund schemes.