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Deutsche, BT deal at hand?
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November 22, 1998: 10:01 a.m. ET
German bank believed close to merger agreement with Bankers Trust
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NEW YORK (CNNfn) - Deutsche Bank AG is reportedly close to completing takeover talks with Bankers Trust Corp. and could announce an agreement by the end of the month.
According to weekend press reports, the German bank and U.S. institution plan to unveil their deal Nov. 30, although market rumors and speculation may force a change in the timetable. Bankers Trust has a market capitalization of roughly $7.4 billion.
"Things have reached a fairly concrete stage," one banking source told Reuters News Service when asked about takeover talks . "There is a genuine basis although the possibility of course remains that it could not work out."
Speculation that Deutsche Bank, Germany's largest bank, was eyeing a takeover of Bankers Trust, the eighth largest bank holding company in the United States, arose last month.
Officially, the German bank has refused to comment on the reports. A Deutsche spokesman told Reuters Sunday that the institution would not comment on market speculation. Bankers Trust also declined comment.
A Deutsche takeover of Bankers Trust would give the German bank a leg up in the U.S. investment banking market by allowing it to tap Bankers Trust's securities unit, Alex Brown.
According to the Financial Times, recent market turbulence has made executives at Bankers Trust worry about the company's ability to withstand a prolonged bear market. As a result, the company has explored the idea of linking with a larger institution to expand its capital base.
Rocked by hedge fund exposure, Bankers Trust reported a net loss of $488 million, or $4.98 per share, for its third quarter ended Sept. 30. That compared with earnings of $246 million, or $2.19 per share, a year ago.
Fed by takeover speculation Bankers Trust stock (BT) Friday rose 5-1/4 to 77-1/4.
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