Deutsche Bank To Keep BHF Bank After Ending Sale Talks
April 18 2011 - 3:26AM
Dow Jones News
Deutsche Bank AG (DBK.XE) said Monday it has decided to keep its
BHF Bank, a surprising move that ends months of intense
negotiations with Liechtenstein's LGT Bank on the sale of the
unit.
Deutsche Bank said it will now incorporate the business
operations of BHF Bank, and its main objective will be to
strengthen the Private Wealth and Asset Management businesses.
Germany's biggest commercial bank said in a press statement that
talks with LGT Bank were ended after discussions between the
parties and the supervisory authorities. It didn't elaborate
further.
The failure of the talks comes as a small blow to Deutsche Bank,
which had entered exclusive talks with LGT Bank in December and
said as late as February that talks were on track for a deal with
LGT to be signed in the first quarter.
However, negotiations dragged on for the last few weeks, as LGT
was said to be interested only in acquiring parts of BHF Bank,
while Deutsche Bank was set to sell all of the bank in one piece,
trying to avoid a complex and difficult breakup of the bank.
While both sides wouldn't comment further on the reason for the
failure of the talks, observers had wondered whether LGT was
willing to pay the estimated book value of EUR600 million that
Deutsche Bank had wanted. According to a newspaper report in late
March, LGT was willing to pay only around EUR350 million for the
parts of BHF it wanted to buy.
Deutsche Bank acquired BHF Bank in March 2010 through the
acquisition of private wealth manager Sal. Oppenheim. While
Deutsche was interested in strengthening its own wealth management
business, it repeatedly stressed that BHF Bank as a whole doesn't
fit into its overall strategy.
-By Klaus Brune, Dow Jones Newswires; +49 69 29 725 500;
klaus.brune@dowjones.com
(Eyk Henning in Frankfurt contributed to this report)