Deutsche Bank yesterday saw its shares leap almost 6 per cent, as it confirmed it was in merger talks with Bankers Trust (BT), the United States' eighth-largest bank holding company.
Amid intensifying speculation over the deal, BT released a statement saying Deutsche was offering US$93 for each BT share, or $9.2 billion for the company.
BT said both management boards had reviewed and indicated support for the deal, but were awaiting final approval from their supervisory boards, which were due to meet separately on Sunday.
Deutsche Bank chairman Rolf-Ernst Breuer said: 'The proposed combinations of Deutsche Bank and Bankers Trust would create a truly compelling global financial services company.' 'We have scheduled high-level meetings with regulators in New York and Washington this week to describe our proposed transaction. I remain optimistic that all final details will be resolved satisfactorily.' Both banks cautioned that the deal was still subject to board approval and regulatory agreement, and that although they had both completed 'in all substantial respects' due diligence investigations, there were still final structural, legal and tax aspects of the transaction that needed to be ironed out.
Deutsche Bank's shares were quoted at the close of Frankfurt trading yesterday at 5.1 deutschemarks (about HK$23.32) at 112.6 marks.
But some analysts said Deutsche's bid for Bankers Trust looked costly, particularly given the bank had made a $488 million third-quarter loss.