April 23 Bank of New York Mellon Corp,
the world's largest custody bank, is working with Goldman Sachs
Inc to find buyers for its corporate trust arm, Bloomberg
reported on Wednesday, citing people with knowledge of the
The unit, which helps companies process payments on debt
they issue, could fetch at least $2.5 billion, according to one
of the people quoted in the report.
Shares of the bank closed up about 2 percent at $34.21 on
the New York Stock Exchange on Wednesday.
The bank has begun contacting potential buyers and is
scheduled to start soliciting offers in about a month, Bloomberg
Kevin Heine, a BNY Mellon spokesman, declined to comment on
The corporate trust arm has staff of 3,500 employees who
service $12 trillion in total outstanding debt for clients,
according to the company's website.
International Strategy & Investment Group analyst Glenn
Schorr said it might be hard for BNY Mellon to find a buyer for
the unit since rivals like State Street Corp and
Northern Trust Corp have already chosen not to be in
"It's hard to think about who the likely interested parties
would be," Schorr said in an email.
BNY Mellon reported a first-quarter profit on Tuesday as
rising markets drove up its assets under custody and
(Reporting by Aman Shah and Anjalirao Koppala in Bangalore and
Ross Kerber in Boston)