Last month the struggling firm embarked on its third round of layoffs in three years. Sources say that at least five portfolio managers were let go, part of an ongoing effort to streamline operations.
Insiders speculate that these moves may be window dressing to ready the firm for sale. Seligman was nearly bought in June by New York Life, but the deal broke down over Seligman's insistence that its partners retain a controlling interest, say people familiar with the thinking ofBill Morris, the firm's chairman. Experts estimate that Seligman could fetch as much as $200 million.
A sale would be bittersweet for Morris: He steadfastly resisted acquisition overtures during the bubble, when scores of his peers were selling their firms for lush prices. But the collapse of the equity market badly hurt the storied firm. Assets have sunk from $40 billion at the start of 2000 to a current $17 billion. One of the few remaining independent money managers, Seligman was founded in 1864.
Morris declined to be interviewed. A firm spokesman says, "Despite persistent rumors, Seligman is not for sale. The various steps that the firm has taken in recent months are to strengthen our investment teams and broaden our product line. These actions should not be misconstrued to be otherwise."