NEW YORK (Reuters) – The first round of bids for National City Corp's (NCC.N: Quote, Profile, Research, Stock Buzz) Allegiant Funds asset management business were due at the end of last week, a person familiar with the matter said on Tuesday.
National City, being represented by Morgan Stanley, was expected to go through the offers and decide which bidders to invite to conduct due diligence for the operation, the source said.
Allegiant had $30.7 billion under management at the end of March. National City, which operates mainly in the U.S. Midwest, posted a $1.76 billion second-quarter loss last month, hurt by soaring mortgage and real estate construction loan losses and a write-down for acquisitions.
The real estate losses, including those in Florida and Michigan, drove National City in April to raise $7 billion in dilutive capital from Corsair Capital LLC and other investors, and to slash its dividend twice in 2008.
A National City spokeswoman declined to comment.
(Reporting by Paritosh Bansal; editing by Jeffrey Benkoe)