Deutsche row over Bankers Trust bid
Thursday 22 October 1998
Jurgen Krumnow, chief financial officer, has lost out in favour of a new appointment believed to be more supportive of the American ambitions of the chief executive, Rolf Breuer.
Bankers say the changes, which will be rubber stamped at the next meeting of Deutsche Bank's supervisory board on 28 October, could clear the way for a deal with the US bank, provided the due diligence process gives Bankers Trust a clean bill of health.
The new man at Deutsche is Thomas Fischer, who is returning to Deutsche after a spell as chief executive at a regional savings bank.
Insiders say that internal discussions about how to finance a US bid are well advanced. Although the bank yesterday was sticking to its official line of "no comment" on the Bankers Trust approach, sources inside the bank say Deutsche could bring forward existing plans to issue New York- listed shares, so that the deal could be structured as a straightforward share swap.
Deutsche would issue US-listed stock to BT holders and effect a "pooling of interest merger", on the model of the recent Daimler/Chrysler deal between US and German car makers. "This could be done in six months less than the time it would take to get the approval of the US Federal Reserve for the deal," the source said.
Failing that, Deutsche could issue preference stock to BT shareholders. "There is no shortage of options," the source added. "That is not the issue."
Deutsche would also want to have a closer look at Bankers Trust's third- quarter results due out later today. These will confirm the degree to which the US bank has been hit by exposure to emerging markets and hedge- fund lending in recent weeks.
Bankers Trust's chairman, Frank Newman, is expected to announce staff cuts of at least 5 per cent at the bank's securities offshoot, BT Alex.Brown, when he briefs Wall Street analysts later.
Shares in both Bankers Trust and Deutsche Bank rose sharply for the second day running yesterday. Deutsche jumped DM2.75 to DM104.95, while Bankers Trust rose $1/4 to $593/16.
BankAmerica, meanwhile, was off nearly $2 as the market reacted to news that David Coulter, the president, had resigned less than a week after the bank disclosed bad debt provisions of $1.4bn, including a $400m write- off on loans to DE Shaw, a specialist derivatives house.
- 1 Secret Cinema: Why were Back to the Future screenings cancelled?
- 2 Christians: The world's most persecuted people
- 3 Israel-Gaza conflict: The secret report that helps Israelis to hide facts
- 4 Thatcher ‘was warned of Tory child sex party claims’
- 5 The Simpsons Family Guy trailer: First look at crossover episode after Comic-Con debut
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
Thatcher ‘was warned of Tory child sex party claims’
Lauren Goodger sex tape: Reality star calls for tougher laws on revenge porn after intimate video leaks online
Israel-Gaza conflict: President Obama presses Netanyahu to call ‘immediate and unconditional’ Gaza ceasefire
Iraq crisis: End 'very near' for Christianity after Isis takeover, says Bishop
Israel-Gaza conflict: The secret report that helps Israelis to hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Opponents of Israel's military operation in Gaza are the real enemies of Middle Eastern peace
Were 'Poor Doors' added to mixed developments so wealthy residents don't have to go in alongside social housing tenants?
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£28000 - £32000 per annum: Ashdown Group: Training/Learning and Development Co...
£28000 - £32000 per annum + benefits: Ashdown Group: Training Programme Manage...
£30000 - £45000 per annum: Harrington Starr: A Global Financial Service Organi...
£30000 - £40000 per annum + Bonus+Benefits+Package: Harrington Starr: C# Web d...