Suntrust Bank Considers Selling RidgeWorth Investments

SunTrust Banks Inc said it was in discussions to sell parts of its RidgeWorth Investments unit, a multi-boutique asset management business. SunTrust did not disclose potential bidders in Monday's statement or which bits it might want to sell, but did say any possible sale would not have a significant effect on its financial results.

Anglo-American asset manager Henderson said on Friday it is in talks to buy parts of RidgeWorth, in an effort by Henderson to increase its exposure to American institutional investors. The asset manager did not specify which parts of RidgeWorth it was considering buying. RidgeWorth, which includes eight boutiques spanning fixed-income, domestic and international equity management, has $63.1 billion in assets, according to SunTrust.

"SunTrust may be motivated to make asset sales because it is the biggest bank left that has not redeemed its TARP preferred issues," Rochdale Securities analyst Richard Bove wrote to clients. SunTrust received $4.9 billion from the U.S. government's Troubled Asset Relief Program. The bank would likely have to sell $1 billion in stock and raise another $3.9 billion through asset sales and borrowings, Bove wrote, adding that the bank has not discussed its plans.

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