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Deutsche, NDB join efforts
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March 28, 2000: 9:11 a.m. ET
$136M alliance will create overseas online brokerage; NDB gains Deutsche research
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NEW YORK (CNNfn) - German financial services company Deutsche Bank and National Discount Brokers Group Inc., the No. 9 U.S. online broker, agreed Tuesday to a wide-ranging alliance that will create an online brokerage operation outside the United States and increase the German company's stake in NDB.
The partnership also gives Deutsche Bank, the world's largest bank as measured by assets, access to NDB's nearly 208,000 online customer accounts, while providing NDB clients access to Deutsche's U.S. equity research and initial public offering capabilities.
Deutsche Bank (FDBK) also gains the use of NDB's technology platform, from which it will build an international online brokerage -- a stated goal of the bank's recently announced e-commerce strategy.
"It's a major stepping stone to reach online customers without having to rely on bricks and mortar," said Michael Philipp, Deutsche Bank's head of Global Equities.
 The letter of intent signed by both companies calls for Deutsche Bank to immediately purchase 3 million shares, or a 14.6 percent stake, of NDB (NDB: Research, Estimates) common stock for $45.31 per share, or $135.9 million -- raising its stake in the online brokerage to 16.3 percent.
Under the deal, Deutsche retains the right to take that total investment to a 19.3 percent stake. The companies expect to sign a definite agreement during the upcoming second quarter.
Earlier this month, Deutsche agreed to purchase rival Dresdner Bank in a deal that will create the world's largest bank with assets exceeding $1.2 trillion. The bank has been striving to rank among the world's elite global investment banks and move away from its unprofitable retail banking business.
Deutsche shares retreated 1.40 euros to 72.50 in early afternoon trading on the Frankfurt Stock Exchange. NDB shares lost 2-3/16 to 54-1/2 in trading Monday. 
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