Fortis is looking to sell its 49 percent stake in a Chinese-fund-management joint venture (JV) it acquired last year as part of the takeover of ABN AMRO, according to a source with direct knowledge of the deal.

The stake in Beijing-based ABN AMRO TEDA Fund Management is expected to be auctioned off, and international fund management companies such as South Korea's Mirae Asset have already expressed interest, the source said.

The source, who requested anonymity because of the sensitivity of the deal, said it is expected to be worth between $200 million and $250 million.

A Fortis spokeswoman declined to comment, as did Xu Kelei, head of marketing with the ABN AMRO TEDA. Mirae officials could not immediately be reached for comment.

The Belgian-Dutch financial services group acquired ABN's asset-management businesses last year after buying the Netherlands biggest bank in a consortium with Royal Bank of Scotland and Spain's Santander for 70 billion euros ($108.5 billion).

Fortis already held a 49 percent stake in Shanghai-based Fortis Haitong Investment Management, the majority of which is owned by Chinese brokerage Haitong Securities. UBS AG is advising Fortis on the ABN AMRO TEDA sale. A spokesman for the Swiss bank declined to comment.

A Fortis source, who also declined to be identified, said the sale was necessary because of rules preventing foreign firms from investing in more than one fund-management JV.

"Within the Chinese laws, we can only keep one JV. So ultimately we will have one JV in China," the source said.

Reuters

(HK Edition 06/19/2008 page2)