DBS

DBS: Newswires reported that a DBS consortium has been shortlisted for the second-round sale process of Coutts International, the global private banking arm of RBS. While no firm date has been set for the final bids, market sources reported that the shortlisted parties have begun due diligence. The sale of Coutts is expected to fetch about US$1b, with the first round offers seeing as many as 10 interested parties emerging. To recap, DBS is teaming up with French bank, Societe Generale, to jointly bid for Coutts, with DBS reportedly interested in Coutt’s Asian operations, while SocGen is keen on its European business. About a third of Coutts US$36b AUM is estimated to come from Asia. Other candidates said to be shortlisted for the next round include Credit Suisse, Julius Baer and Investec. Reports suggest that RBS preference is for it to sell Coutts as one whole entity, as opposed to splitting it up into European and Asian units, which could put a slight dent on the chances of the DBS-SocGen consortium. Based on AUM figures published by the 2013 Private Banker International, a successful acquisition of Coutts could potentially see DBS leapfrog peers and come within touching distance of the top five largest private banks in Asia.