(WSJ) Shares of Invesco Ltd rose at least 8% in premarket on news it is holding talks over a potential deal to merge with State Street Corp.’s asset-management business.
The deal is a sign of growing investor enthusiasm in the asset-management industry, with the appetite for lower-cost funds weighing on the profit margins in the industry.
The terms of the potential deal are yet to be disclosed and the talks could still fall apart.State Street is among the world’s biggest custody banks and its asset management unit controls almost $4 trillion in assets. Invesco manages about $1.5 trillion in assets and oversees a large ETF business, including QQQ, DIA and SPY Invesco ETFs, that track major US stock market indices.
IVZ: NYSE is up +6.47%, STT: NYSE is up +0.023%
