Published: January 28, 2010 - 5:20 pm
(AP) - Bank of New York Mellon Corp. is in talks with PNC Financial Services Group Inc. to buy one of PNC’s business units for close to $2.5 billion, The Wall Street Journal reported, citing people familiar with the matter.
Pittsburgh-based PNC Financial has been looking to sell its unit, PNC Global Investment Servicing, for about three months, the Journal reported. The unit, based in Wilmington, Del., provides back-office processing for financial advisers, fund managers and brokers.
The sale could help the bank pay back $7.6 billion in bailout funds it received from the government during the financial crisis. PNC Chief Executive James Rohr has made repayment a goal for 2010.
A deal with Bank of New York Mellon could be announced as soon as next week, the Journal reported.
Spokesmen for PNC Financial and Bank of New York Mellon declined to comment, with both companies saying “we do not comment on rumors and speculation.”
Shares of PNC Financial rose 2.1% in after-hours trading Thursday after closing the regular session at $54.14, down 22 cents.
Shares of Bank of New York Mellon closed down 50 cents, or 1.7%, at $29.17