Deutsche Bank Said to Pursue Asset-Management Sale After Preliminary Bids

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Deutsche Bank Said to Choose Asset Management Sale

Guenter Schiffmann/Bloomberg

The Deutsche Bank AG name sits outside a branch in Munich.

The Deutsche Bank AG name sits outside a branch in Munich. Photographer: Guenter Schiffmann/Bloomberg

Deutsche Bank AG (DBK) executives decided
to pursue a sale of asset-management units after they were
satisfied with early interest in the business, according to two
people with knowledge of the matter.

More than two dozen bidders, including banks, private-
equity firms and asset managers, handed in preliminary offers
last week, said the people, who declined to be identified
because talks are private. Some bidders valued all of the assets
between 1.5 billion euros ($1.9 billion) and 2.5 billion euros,
while others made offers for pieces of the business, the people
said. A selected group of potential buyers will be asked to
submit second-round bids in February, one person said.

Deutsche Bank, the biggest in Germany, announced a
strategic review in November of its global asset management
division, excluding operations of the DWS mutual fund unit in
Germany, Europe and Asia. Chief Executive Officer Josef Ackermann, who’s leaving in May, built up the asset management
and consumer banking units to temper the company’s reliance on
investment banking.

Christian Streckert, a Deutsche Bank spokesman, declined to
comment. Deutsche Bank’s management board opted for a sale at a
meeting Jan. 10, though could still decide later in the process
not to sell, one person said.

The German lender would prefer to sell the businesses as a
whole, though it will also consider bids for parts, the person
said. Among the assets for sale are the U.S. portion of DWS
mutual funds; RREEF alternative investments; DB Advisors, which
works for pension and sovereign wealth funds and endowments; and
Deutsche Insurance Asset Management for insurers.

Assets Under Management

The units hold less than 400 billion euros in assets under
management, according to estimates from Dirk Becker, a
Frankfurt-based analyst at Kepler Capital Markets.

The German lender in November said the review “is focusing
in particular on how recent regulatory changes and associated
costs and changes in the competitive landscape are impacting the
business.”

Europe’s top financial regulator is requiring the region’s
banks to bolster their capital levels by mid-2012 to withstand
losses on sovereign debt. Deutsche Bank needs to fill a capital
gap of 3.2 billion euros after the results of a stress test by
the European Banking Authority.

To contact the reporter on this story:
Aaron Kirchfeld in Frankfurt at
akirchfeld@bloomberg.net

To contact the editors responsible for this story:
Frank Connelly at fconnelly@bloomberg.net;
Edward Evans at eevans3@bloomberg.net.

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