April 3, 2012 / 12:55 PM / 7 years ago

UPDATE 1-Deutsche Bank asset manager unit may get $2 bln-sources

* Deutsche Bank talks to sell asset management on track

* Sale price likely at low end of valuation range -sources

* Sale seen completed by end April

FRANKFURT, April 3 (Reuters) - Deutsche Bank AG is expected to sell its asset management business to U.S. institutional asset manager Guggenheim Partners for between 1.5 billion and 1.6 billion euros ($2-2.13 billion), two people familiar with the deal told Reuters.

Deutsche Bank declined to comment on the price but said talks for a sale remain “on track”.

Deutsche and Guggenheim are in the final stages of structuring a deal which could see some Deutsche Bank executives, including current asset management chief Kevin Parker, stay with the unit even after the sale is completed, the sources said.

An agreement is expected between mid-April and end April, before Deutsche Bank installs new group management after its Chief Executive Josef Ackermann retires in May.

The deal structure under discussion includes a provision whereby Deutsche Bank may have to make up for lost profits if certain assets perform below expectations after the sale, one of the people said.

A key issue under discussion is how to carve out the various businesses - which have about 400 billion euros in assets under management and 1,500 employees - one of the sources said.

They include DWS Americas, the mutual fund business for the Americas region; DB Advisors, the global institutional asset management business; Deutsche Insurance Asset Management, the global insurance asset management business; and RREEF, the global alternative asset management business.

Not included in Deutsche’s sale plan are private wealth management, Deutsche’s DWS franchises in Germany, Europe and Asia and wealth manager Sal. Oppenheim.

Deutsche said in November it was reviewing a sale of large chunks of its global asset management businesses in light of new regulation, rising costs and growing competition that was expected to weigh on future earnings.

A purchase by Guggenheim would be a big move for the U.S. asset manager, which has 1,700 employees and more than $125 billion in assets under management, according to its website.

Guggenheim, which describes itself as a diversified financial services firm, was founded by a great grandson of the art collector Solomon Guggenheim and counts Alan D. Schwartz, the former chief executive of Bear Stearns among its staff.

Guggenheim provides investment banking and capital market services as well as insurance, institutional finance and investment advisory services to institutions, governments, corporations, investment advisors, family offices and individuals.

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