Primecap Expected to Receive Bids Today

Primecap Management Co., which manages about $14 billion, including $10 billion for Vanguard Group, will receive bids from potential buyers today, two people familiar with the situation said. It was not immediately clear who the bidders will be, however. Analysts said the relatively low fees Primecap earns for managing Vanguard funds could mean the purchase price will fall short of the amount recently paid for other fund managers. Based on the sale price for two other fund managers, Primecap’s $14 billion in assets would value it at more than $420 million. Officials at Pasadena-based Primecap did not return calls seeking comment. Merrill Lynch & Co. is Primecap’s investment bank, the people said. A Merrill spokesman declined to comment. Primecap generated about $22 million in fees in the year ended June 30 for managing the Vanguard Primecap Fund, which was closed to new investors in April.