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Dresdner deal nearly done
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September 15, 2000: 2:33 p.m. ET
Merger between German bank and Wasserstein Perella expected Monday
By Staff Writer Luisa Beltran
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NEW YORK (CNNfn) - The merger between Dresdner Bank AG and New York investment bank Wasserstein Perella & Co. is on track and an announcement is expected Monday, a source close to the deal told CNNfn.com Friday.
A deal between the firms will not come on Friday or this weekend but is set for Monday, the source said. The firms are still working out final terms and a merger could still be called off, the source said.
"You are never safe until you are really done," the source said. Both Dresdner and Wasserstein declined to comment.
The acquisition's final price is anticipated to fall in the $1.3 billion to $1.5 billion range.
Dresdner is also setting up bonus packages to keep staff from leaving, sources said. The German bank typically prepares such packages, and had prepared bonuses in both of its failed attempts for Deutsche Bank and Commerzank AG, sources said.
Dresdner has set aside $150 million to $200 million to cover the bonuses, the Wall Street Journal reported earlier this week.
M&A business attracts Dresdner
The deal for the New York-based Wasserstein will include the firm's merger and acquisition, high-yield and equity practice, a source said.
The acquisition comes on the heels of a rapid shakeup in the global services industry that has seen several top U.S. investment banks, including PaineWebber, J.P. Morgan (JPM: Research, Estimates) and Donaldson, Lufkin & Jenrette (DLJ: Research, Estimates), snapped up by larger rivals in the last few months.
Dresdner has suffered some embarrassing setbacks when attempting to acquire firms. In April, Dresdner scrapped its merger with Deutsche Bank AG and failed in July to acquire Commerzbank AG.
But this deal would give the German bank access to the coveted mergers and acquisition market in the U.S. Wasserstein ranks fifth in the U.S. as an adviser on mergers and acquisitions. Wasserstein served as an advisor on the $11.5 billion merger of Credit Suisse First Boston and Donaldson, Lufkin & Jenrette.
Wasserstein also helped Philip Morris (MO: Research, Estimates) in its $14.9 billion acquisition of Nabisco Holdings Corp. (NA: Research, Estimates) and advised Time Warner (TWX: Research, Estimates) in its $128 billion merger with America Online (AOL: Research, Estimates). Time Warner is the parent of CNNfn.com. 
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