Goldman Sachs Asset Management [GSAM] has agreed to acquire 100% of Macquarie-IMM Investment Management, a South Korean asset management firm 65% owned by Macquarie, with around 10 trillion won ($10.8b) in assets under management. Financial terms were not disclosed, but Reuters estimates the transaction to be valued at 120b ($129m) - 180b won ($194m), based on deals by other investment banks in South Korea in 2006. A Macquarie spokesman commented: "We were approached by Goldman ... The offer was quite attractive ... so we decided to accept the offer." Macquarie is the largest foreign i-bank in S. Korea and has another asset management unit run as a JV, the largest foreign asset management operation in the country. The head of GSAM Int'l called the acquisition a "significant milestone" in Korea, "a growing financial hub with significant market potential." Shares of Goldman Sachs gained 2.6% to $227.34 on Friday, setting a new all-time high. Macquarie's ADRs trading on the pink sheets gained 1% to $75.50, also a new all-time high.
Commentary: KKR and Goldman Capital Take Out Harman International Industries For $8 Billion • Blackstone Files For $4 Billion IPO, Reveals Untold Secrets • Goldman Sachs: More Transparency Would Boost Share Value
Stocks/ETFs to watch: Goldman Sachs (NYSE:GS), Macquarie Bank Limited (OTCPK:MQBKY). Competitors: JP Morgan (NYSE:JPM), Lehman Brothers (LEH), Merrill Lynch (MER), Morgan Stanley (NYSE:MS). ETFs: iShares Dow Jones US Broker-Dealers (NYSEARCA:IAI), KBW Capital Markets ETF (NYSEARCA:KCE), Financial Select Sector SPDR (NYSEARCA:XLF)
Conference call transcripts: Goldman Sachs F1Q07 (Qtr End 2/23/07)
Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.