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UPDATE 1-KKR, others eye SocGen's TCW subsidiary- paper

Published 09/01/2009, 11:17 AM
Updated 09/01/2009, 11:18 AM
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* NYPost says KKR and other firms eyeing SocGen's TCW

* SocGen says still considering IPO of TCW in 5 years (Updates with comments from Societe Generale)

Sept 1 (Reuters) - Kohlberg Kravis Roberts & Co and other private-equity firms are eyeing a buyout of Societe Generale's asset management subsidiary TCW Group, the New York Post said, citing sources.

Talks between SocGen and the private-equity firms are informal at the moment, the paper said.

The paper said a private-equity firm could help TCW recapitalize its ownership or assist in a management-led buyout.

TCW's interim Chief Executive Marc Stern told the paper that private-equity firms may participate in a recapitalization of TCW, but denied that SocGen was planning an outright sale of the unit.

"Whether private equity could be involved is something that could be considered," Stein told the paper.

SocGen said it was still considering listing its TCW U.S. fund management arm within five years.

"Our intention is to develop TCW as a leading player in the consolidation of the U.S. investment management industry and to envisage an IPO within five years," said a spokesman for SocGen's global investment management services division in Paris.

The SocGen spokesman declined further comment on the New York Post article.

Earlier this year, SocGen merged its asset management arm with that of rival French bank Credit Agricole..

The new asset management firm formed by the two banks will be 75 percent owned by Agricole and will also have 20 percent of TCW. (Additional reporting by Sudip Kar-Gupta in Paris) (Reporting by Ajay Kamalakaran in Bangalore; Editing by Derek Caney and Rupert Winchester) (ajay.kamalakaran@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800 +1 646 897 1898; Reuters Messaging: ajay.kamalakaran.reuters.com@reuters.net))

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