Pimco, Allianz Talk but Downplay a Buyout

Officials at U.S. fund manager Pimco Advisors Holdings and German insurance giant Allianz confirmed Thursday that they had held talks, but they played down speculation that the German group is poised to acquire Pimco.

Both companies stressed that a linkup is just one of the options they are considering.

“We’ve been approached over the last few years by a number of potential suitors and we ain’t married yet,” said Lee Thomas, a Pimco managing director and chief portfolio manager. “Our view has been that it’s better for us not to link to a single entity. We would rather be able to distribute our products widely through a number of entities.”

Allianz officials said Newport Beach-based Pimco, one of the leading U.S. bond fund managers, is not the only financial institution on its shopping list.

“We have talked with many, among them with Pimco,” the insurer’s spokesman said.

Pimco’s partnership units, which trade on the New York Stock Exchange, fell $1 on Thursday to $32.88. Allianz shares fell nearly 2% on the Frankfurt market.

An acquisition of Pimco could be worth as much as $5 billion, industry experts said Wednesday.

Allianz has made no secret that it is looking for acquisition targets among life insurers and asset management firms in the U.S., where it has yet to achieve its goal of ranking among the top five players.

Analysts said Pimco, which manages $250 billion in assets and ranks among the top U.S. fund management firms, would be a good fit for Allianz. Pimco employs 585 workers in Orange County.

Some analysts said the price tag might be too high for Allianz, which, lacking a U.S. stock listing, would have to pay for Pimco in cash rather than in shares.

Reuters and Times staff writer Edmund Sanders contributed to this report.