Bank stocks surge on tie-up report
Wednesday 21 October 1998
Bankers said a deal would give the combined operation the balance sheet strength to underwrite the big corporate deals and weather the tough market conditions many fear are in store for the industry.
However, they cautioned that while both banks have respectable fixed- income businesses, putting the equity businesses together would still leave the group well behind the leading Wall Street houses.
Neither bank would comment. Banking sources said they were sure there had been contacts between the two institutions, but these were "very, very preliminary" and there were doubts about whether they would lead to a takeover of the US bank.
Deutsche Bank's chief executive, Rolf Breuer, said in a press interview that the bank, Germany's largest, was still keen to make a big US purchase despite stock market turmoil.
Bankers Trust, which reports third-quarter earnings tomorrow, has been buffeted in the past few days by rumours about its financial health.
Deutsche, which bought City merchant bank Morgan Grenfell in 1989 and has made several attempts to create its own global-scale investment bank, is believed to have approached a string of US securities houses including JP Morgan, Hambrecht & Quist and Lehman Brothers.
John Leonard, banks analyst at Salomon Smith Barney, said it was hard to see a merger succeeding given the cultural problems of integrating a German and US bank.
Other banks also saw sharp share price gains yesterday as investors took the reports that Deutsche and BT were talking as a signal that recent worries about banking exposures were overdone and that prospects for consolidation were improving.
- 1 Allonautilus scrobiculatus: World's 'rarest' creature spotted for only the third time ever
- 2 Miley Cyrus calls out hypocrisy of women’s nipples being taboo
- 3 Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
- 4 Jozef Wesołowski: Former Catholic archbishop found dead ahead of child sexual abuse trial
- 5 Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Spain accused of 'provocation' after letting Russian submarine refuel off Gibraltar
Allonautilus scrobiculatus: World's 'rarest' creature spotted for only the third time ever
Miley Cyrus address Robin Thicke VMA controversy: ‘He wanted me as naked as possible, but I got the heat because I’m a woman’
Miley Cyrus calls out hypocrisy of women’s nipples being taboo
Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...