Deutsche denies poaching

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The Independent Online
Deutsche Bank yesterday dismissed accusations that it has been poaching key staff from SG Warburg, which is in the throes of being taken over by Swiss Bank Corporation. "They are coming to us; we are not poaching them," said Hilmar Kopper, chief executive of Germany's largest bank, which is rapidly building up its investment banking operations in London. "Good people come to us because they know where we are headed."

Meanwhile, Swiss Bank Corporation declined to comment yesterday on reports about an internal document stating 1,000 jobs in Warburg and SBC's international investment banking operations will go as a result of the takeover. Marcel Ospel, the chief executive-designate of SBC Warburg, has indicated that the main cuts will fall in duplication of the international equities businesses, and especially in back-office support.

The internal document reportedly said the integration of Warburg will cost SBC some pounds 150m, and that the operation will be completed by the summer of 1996. The document said the cuts in duplication would affect not just Warburg in London, but also SBC's operations here, which employ 1,300.

The poaching row emerged recently when Sir David Scholey, Warburg's chairman, wrote a letter of complaint to Mr Kopper. Sixteen Warburg people have gone to Morgan Grenfell, Deutsche's London-based merchant banking arm, since the beginning of the year, the last two only this week.