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.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers