Deutsche Bank

Deutsche Bank Fails to Reach Agreement with Guggenheim

Deutsche Bank Fails to Reach Agreement with Guggenheim

For the second time, Deutsche Bank AG (NYSE:DB) (FRA:DBK) (ETR:DBK) Germany’s largest lender by market value, failed to reach an agreement to sell part of its asset management business to New York based-Guggenheim, a privately held financial services firm that oversees more than $125 billion.

The first time was in May, when Deutsche Bank and Guggenheim failed to come on terms over the potential sale of DWS Americas, DB advisors and Deutsche Insurance Asset Management. DWS America is DB’s American mutual fund business; DB Advisors, its institutional asset management unit; and Deutsche Insurance Asset Management, its global insurance asset management business.

The deal would have quintupled Guggenheim’s assets and put it on par with the likes of Legg Mason, Inc. (NYSE:LM) and Franklin Resources, Inc. (NYSE:BEN).

If the rumors are to be believed, earlier talks failed because of the complexity of the activities involved,  or because the two sides were unable to agree on a price. A Person familiar with the matter suggested that Ameriprise Financial, Inc. (NYSE:AMP) and State Street Corporation (NYSE:STT), who were in the bidding race before for earlier units, could re-enter.

Aberdeen Asset Management plc (LON:ADN)  and Henderson Group Plc (LON:HGG), for instance, might be interested in the DB Advisors unit. DB has been conducting a strategic review of its assets management business, and it will issue more details in September on the matter. Part of its strategic review  may suggest that Deutsche Bank wants to offload parts of its international asset management business in order to focus on its mutual fund units in Germany, Europe and Asia. The businesses being reviewed account for 78% of the bank’s assets under management. They include DWS Americas,  Deutsche Insurance Asset Management as well as institutional asset manager DB Advisor and RREEF. Together it is valued at approximately EUR 1.6 billion.

A representative for Guggenheim Partners could not be reached for comment.

LEAVE A COMMENT


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Sign up for ValueWalkPremium today and get our exclusive content for 35% off.

Use coupon code vip19 or click on the button below

Limited time offer only ENDS 12/31/2019 or after next 25 subscribers take advantage whichever comes first – please do not share this discount with others

 

0