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Money Management Executive

Wells Fargo Frontrunner in Strong Bid

April 14, 2004, 1:00 a.m. EDT 1 Min Read

The sale of Strong Financial is not complete yet, but Wells Fargo has emerged as the frontrunner, expected to pay less than $500 million, Reuters reports

However, there is still another bidder in the mix in Nuveen Investments, the Chicago-based municipal bond fund manager. A sale is still weeks away, according to Reuters’ sources, but Wells has emerged as the likely suitor, as well as the better fit.

Goldman Sachs was hired in December to shop Strong’s assets in the wake of alleged wrongdoing at the shop and with its founder Dick Strong. The firm had originally been seeking $1 billion and wanted a quick sale, but the going rate for the tainted fund shop has apparently dropped dramatically in this environment of heightened scrutiny.

According to the report, Wells Fargo wanted and got assurance that certain portfolio managers would stay on board if the sale is completed.

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The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.
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