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Deutsche leaps on BT link
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November 23, 1998: 5:59 a.m. ET
Reports: $9.7B deal could be announced as early as Monday
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LONDON (CNNfn) - Deutsche Bank stock surged 5 percent in morning Frankfurt trade Monday on reports that the German bank could announce a $9.7 billion takeover of Bankers Trust as early as Monday.
Deutsche Bank refused to comment on the negotiations or on a cash purchase price reported to be valued at $93 per Bankers Trust share. The deal would create the world's largest financial services company, measured by assets.
Deutsche Bank stock jumped to 113.35 marks Monday, up 5.35 on Friday's close.
Deutsche Bank and BT had planned to unveil their deal Nov. 30 but are reportedly hurrying to get the deal done following leaks over the weekend. But a board meeting in New York broke up Sunday night without approving the deal, according to the reports.
The deal would be the largest takeover of a US bank by a European bank.
With assets of about $840 billion, the combined group would be larger than Switzerland's UBS and the newly formed Citigroup.
Deutsche Bank has long been trying to enter the U.S. investment banking arena.
Reports of a deal first surfaced last month.. Deutsche is Germany's largest bank while Bankers Trust is the eighth-largest bank holding company in the United States. It posted a loss of $488 million in the third quarter due to turmoil in the financial markets.
Bankers Trust's shares [BT] closed Friday at 77-1/4 in New York, up 5-1/4 on reports that the deal was close.
Deutsche Bank reportedly believes it can save about $1 billion a year as a result of the combination, which implies substantial job cuts. 
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