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News > Deals
Dresdner deal nearly done
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. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.