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Perpetual to Pursue Wealth Management Sale, Rejects KKR Deal

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(Bloomberg) -- Perpetual Ltd. said it will pursue the sale of its wealth management business after rejecting the latest offer from KKR & Co., as the Australian financial services firm attempts to lure new offers.

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The company has ended talks with KKR, according to a Perpetual statement Monday. This is the right course of action to deliver long-term value to shareholders, Chief Executive Officer Bernard Reilly said in the statement. The stock opened about 1.7% lower in Sydney.

Perpetual had been considering another offer from KKR to buy its wealth management and corporate trust businesses after a deal last year was scuppered by an unexpected tax ruling. The deal activity comes amid a renewed focus from overseas investors in Australia’s wealth sector, with Insignia Financial Ltd. fielding a trio of takeover bids.

Perpetual said it will maintain its push to separate its businesses to establish standalone and more autonomous units. It will also implement a new operating model for its asset management division and deliver on an improved cost reduction program.

KKR and Bain Capital have been among the firms looking to tap into Australian high-net worth wealth and its fast-growing pensions pool.

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(Adds detail on deal and shares from second paragraph)

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