Deutsche quits Hertz float after e-mail gaffe
Thursday 09 November 2006
Deutsche Bank has been forced to withdraw as an underwriter to one of the biggest US flotations of the year, after sending inappropriate e-mails about the deal to its institutional investor clients.
The German banking giant will miss out on millions of dollars in fees from the $1.5bn share sale by Hertz, the car rental business which used to be part of Ford and which is likely to be valued at more than $15bn (£7.8bn).
The bank fell foul of Wall Street's tough rules on how to market shares in a flotation, which are designed to ensure all potential investors get the same information at the same time.
Hertz said yesterday that Deutsche had been dropped after the discovery of e-mails to 175 clients that might "constitute a prospectus not meeting the requirements of the Securities Act". If the investors buy Hertz shares based on the incomplete information, the company could be liable to buy back the stock.
A Deutsche Bank spokesman said: "After reviewing the e-mails in question, we determined it would be best for our client if we took an extremely cautious approach, so we resigned our role in the offering."
Deutsche had been in the second tier of nine investment banks handling the flotation. The bank declined to say whether it was disciplining the employee who sent the e-mails two weeks ago.
- 2 Rarest Beanie Baby of them all could be sold for £62,500 on eBay
- 3 Driving while dehydrated can be just as dangerous as drink driving, study suggests
- 5 Farmer told to tear down mock-Tudor castle after hiding construction behind hay bales
Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
Rarest Beanie Baby of them all could be sold for £62,500 on eBay
Professional big game hunter Ian Gibson crushed to death by elephant during hunt
Ben Affleck asked TV chiefs to hide slave-owning ancestry, new hacked Sony emails published by Wikileaks claim
Farmer told to tear down mock-Tudor castle after hiding construction behind hay bales
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...