DEUTSCHE Bank, Germany's largest, is bidding to join the ranks of the giant 'bulge bracket' investment banks, through an estimated US$8 billion deal to buy Bankers Trust of the United States.
Sources close to BT and Deutsche Bank said yesterday talks were continuing and that a deal could be finalised as early as next week.
Deutsche was holding a board meeting late yesterday, a switchboard operator at the bank said. Although Deutsche Bank declined to comment on a possible deal, both sides are said to be keen that any potential deal is well thought through before a merger is agreed.
European banks have been eager to develop stronger investment banking units over the past few years, to build up non-commercial banking earnings before the launch of the European single currency. The onset of the euro is expected to intensify competition between banks and has already spurred dramatic consolidation in the sector.
Sources yesterday said BT and Deutsche wanted to avoid the problems that Citicorp and Travelers have seen in trying to merge their corporate and investment banking businesses.
The need for both BT and Deutsche to develop a much stronger international business and Deutsche's particular ambitions in investment banking, means that each bank is likely to view the other as an attractive partner.