SocGen Is Said to Scrap Sale of U.K. Private Bank Unit Hambros

(Bloomberg) -- Societe Generale SA has scrapped a proposed sale of its U.K. private bank Kleinwort Hambros after several suitors dropped out of the process, people with knowledge of the matter said.

The French bank has decided to keep Kleinwort Hambros for the time being after failing to reach an agreement with potential acquirers, the people said, asking not to be identified because the information is private. The sale had initially attracted interest from wealth managers including Julius Baer Group AG and EFG International AG, Bloomberg News reported in September.

Some potential buyers were were turned off by the small size of the business as well as the potential for ongoing restructuring costs, according to the people. Other bidders were interested in buying only some parts of the business, the people said.

Societe Generale has been selling assets and cutting costs in an attempt to shore up its capital buffers. Kleinwort Hambros, which traces its roots back more than two centuries, has previously said it managed 14 billion pounds ($18 billion) of assets as of the end of 2018.

A representative for SocGen declined to comment.

To contact the reporter on this story: Jan-Henrik Förster in London at jforster20@bloomberg.net

To contact the editors responsible for this story: Dinesh Nair at dnair5@bloomberg.net, Ben Scent

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