Citigroup does not buy Deutsche Bankthough general director Deutsche Bank Joseph Akerman gathered
Yesterday has denied the information that the Deutsche Bank management carries on negotiations for merge to the largest bank of world Citigroup. Nevertheless foreign mass-media, referring to different sources, inform that negotiations such were conducted last month, but were at a deadlock.
hearings about intention Citigroup to buy Deutsche Bank have appeared in the autumn of last year when head Citigroup Senford Whale came to Germany and met representatives of the cabinet of Germany to discuss the relation of Berlin to possible merges (see from December, 1st, 2003). Officially the government of Germany has declared that will not object to it, however in November German Minister of Finance Hans Ajhel has collected representatives of local bank structures to discuss prospects of consolidation of the bank market on purpose not to admit transition of German financial structures under foreign control. Process of consolidation of world bank sector also gave soil to conversations on merge. We will remind that in October of last year Bank of America has declared purchase FleetBoston Financial for $47 mlrd (see from November, 3rd, 2003). It was the largest transaction of 2003 which has provoked a wave of merges - absorption in bank business. In particular, on January, 14th, 2004 JP Morgan Chase declared acquisition Bank One for even great sum - $58 mlrd (see from January, 16th).
On a press - conferences following the results of a year, taken place yesterday in Frankfurt am Main, mister Akerman has denied hearings about merge. “ Recently we observed merges Bank of America - Fleet Boston and JP Morgan Chase - Bank One... It, however, does not mean that the European bank sector will quickly follow to their example... Now we do not conduct any negotiations about consolidation “. It is echoed by general director Citigroup Charles Prins. At the seminar which has passed yesterday in Singapore, he declared that is not interested in merges which will demand radical changes in bank structure.
nevertheless both Reuters agency, and The Financial Times, referring to not named sources, inform that in January negotiations about merge of two banks have proceeded. The meeting a top - managers Citigroup with Joseph Akermanom and Michael Kors - the head of department of international financial operations Deutsche Bank became their culmination. Source Reuters informs: “ Negotiations was have quickened, but then have again stopped. Now all is silent “.
According to The Financial Times, negotiations have stopped in connection with adverse political consequences which will be inevitably caused by merge, - it will cause reduction of workplaces in Germany, where a problem of unemployment and so it is sharpest. Failure of negotiations connect and with proceeding process on “ to business Mannesmann “ - Joseph Akerman entering into the supervisory board of telecommunication company Mannesmann, together with five other former heads of the company is accused of bribe reception in size ˆ57 million from concern Vodafone, forced to make of them the decision on company sale to the British concern (wrote about it on January, 26th). Today mister Akerman will give again evidences on this business.
NATALIA - SKORLYGINA