Deutsche Bank puts €2bn price on asset management units

Deutsche Bank has reportedly put a €2bn minimum price tag on its asset management business with more than 50 potentially buyers having registered an interest with final bids due by Spring.

The interest comes after Germany’s largest bank announced a strategic review of its fund management operations last month, and said it was exploring all possibilities for its asset management unit, except for retail fund management arm DWS Investment.

The Financial Times reported this morning sources saying interest had already come from Wells Fargo, Royal Bank of Canada and Ameriprise Financial, among others.

Reuters noted non-binding offers were expected next month or February.

European banks face pressure to raise the ratio of high quality assets on their balance sheets to meet levels agreed across Europe by mid-2012.

The European Banking Authority last week said Deutsche Bank would need to raise €3.2bn, of a total €13.1bn needed by German banks, to meet the European-mandated tier 1 capital ratio of 9%.

At the same time, laws from the US are effectively encouraging banks to divest their higher risk activities such as alternatives fund management.

The Deutsche businesses for sale include Rreef, its alternative asset manager, and its US asset management business, and insurance mandates.

 

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