UK - State Street has dismissed market claims that it is about to be taken over by financial services giant Citigroup.
Speculation that State Street – which owns fund manager State Street Global Advisors – will be taken over was sparked after Citigroup chairman Sandy Weill revealed the firm was looking for acquisition targets, especially in the custody arena.
But a spokeswoman for State Street dismissed talk of a bid as “market rumours and speculation” and said Citigroup could not launch a takeover bid without State Street’s permission.
In 1999, the two fund managers launched the third-party administrator CitiStreet. The agreement made in the joint venture prohibits any takeover bid before 2009.
Meanwhile, State Street has revealed its voluntary redundancy programme backfired with nearly twice the expected number of staff offering to leave the firm. In April, the firm said it was looking to cut expenses by US$125m (£76.8m) a year through 1800 voluntary leavers.
Since the announcement, more than 3100 staff have chosen to take State Street’s voluntary redundancy package.
The firm is now looking to hire 800 to 1000 employees over the next 12 months to fill the void.
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