Italy-based UniCredit Bank is planning to sell or float its Pioneer Investments asset management unit valued at over 2 billion ($2.79 billion) in 2015.
The bank has posted a 14 billion loss due to writedowns on bad loans and past acquisitions as it acted to strengthen its balance sheet and increase its common equity tier 1 ratio, reported the Financial Times.
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According to UniCredit’s 2013 to 2018 business plan, it is looking to expand Pioneer’s asset management business by increasing its distribution footprint.
However, the proposal will boost Pioneer’s assets under management to 263 billion by 2018.
This move follows Pioneer’s listing of a minority stake in Germany’s HypoVereinsbank, which UniCredit has purchased for 15.4 billion in 2005.
Meantime, UniCredit is seeking to slash 8,500 jobs by 2018 or nearly 6% of its workforce as part of a restructuring plan.
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By GlobalDataUnder the plan, UniCredit has also restructured its retail bank business in Germany, including shutting half its 600 branches and cutting 1,675 jobs by 2018 and has taken 355 million in charges.
UniCredit has tried to sell Pioneer four years ago, but dropped these plans after Federico Ghizzoni took over as chief executive from Alessandro Profumo in 2010.
