Deutsche joins Tradepoint backers

TRADEPOINT Financial Networks, the electronic stock-trading system, yesterday said Deutsche Bank had taken a stake in the venture as it races to launch a pan-European platform. The deal boosts Tradepoint's line-up of heavyweight backers, joined in September by Credit Suisse First Boston, Dresdner Kleinwort Benson and Merrill Lynch.

Deutsche will take a 9.74 per cent stake in a consortium controlling 54 per cent of the company, which says it is on track to introduce a European stock-trading service in mid-2000.

Financial details were not disclosed, but Tradepoint has a market value of about pounds 209m, valuing Deutsche's at pounds 11m.

"We believe that the Tradepoint exchange model represents one of the key components of the future electronic world," said Michael Philipp, Deutsche Bank's head of global equities. "This investment is part of Deutsche Bank's strategy to sustain its leadership in electronic business."

The consortium refinanced Tradepoint earlier this year to aid its challenge to the London Stock Exchange and develop its pan-European system. Tradepoint, which lost pounds 7.2m last year, handles about 0.5 per cent of the equities traded in Britain.