Tuesday, February 28, 2012
Is Guggenheim About to Seal the DWS Deal?
News summary by MFWire's editors
Has Deutsche Bank
chosen a winner in the auction of DWS [profile] in the U.S. and other its asset management businesses, minus its Asian and European mutual fund arms? Today the German bank confirmed that it has entered "exclusive negotiations" with Claymore and Rydex acquirer Guggenheim Partners [profile].
Both Bloomberg and the Financial Times reported that Deutsche Bank may be close to doing a deal with Guggenheim.
Deutsche listed DWS Americas -- as well as global institutional arm DB Advisors, Deutsche Insurance Management and its RREEF real estate and alternatives asset manager -- as under discussion. The businesses nearly hold a combined 400 billion euros ($538.2 billion), including about 42 billion ($56.5 billion) in DWS Americas. Guggenheim works with more than $125 billion in assets.
The bank's statement makes no mention of potential pricing. Bloomberg estimates a price tag of between 1.5 billion and 2 billion euros (i.e. $2.01 billion to $2.69 billion), while the FT says Deutsche wants $2 billion. For $538.2 billion in assets under management, that puts the $2 billion price possibility at 0.37 percent of AUM.
According to the wire service, Deutsche needs to raise 3.2 billion euros ($4.31 billion) to satisfy new capital requirements.
Deutsche Bank publicly began exploring "strategic options" for its global asset management businesses -- minus the German, European and Asian mutual fund arms -- back in November [see MFWire.com, 11/22/2011]. Possible bidders mentioned since then include: Columbia parent Ameriprise; Delaware parent Macquarie; Putnam parent Power Financial; State Street; and Wells Fargo [see MFWire.com, 2/27/2012].
Company Press Release
February 28, 2012 09:00 AM Eastern Time
Deutsche Bank Enters Exclusive Negotiations with Guggenheim Partners
FRANKFURT AM MAIN, Germany--Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) announced today that it is in exclusive negotiations with Guggenheim Partners on the sale of its Asset Management businesses that are subject to a previously-announced strategic review. The businesses include DWS Americas, the Americas mutual fund business; DB Advisors, the global institutional asset management business; Deutsche Insurance Asset Management, the global insurance asset management business; and RREEF, the global alternative asset management business.
Guggenheim Partners is a diversified financial services firm with significant expertise in institutional asset management serving the insurance and pension sectors, as well as in intermediary-focused investments through a broad range of mutual fund solutions.
The exclusive negotiations follow Deutsche Bank’s announcement on November 22, 2011, that it would conduct a strategic review of its Asset Management division globally except for the DWS franchise in Germany, Europe and Asia, which the Bank had already determined to be a core part of its retail offering in those markets.
About Deutsche Bank
Deutsche Bank is a leading global investment bank with a substantial private clients franchise. Its businesses are mutually reinforcing. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With more than 100,000 employees in 72 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions, creating lasting value for its clients, shareholders, people and the communities in which it operates.
About Guggenheim Partners
Guggenheim Partners is a privately held global financial services firm with more than $125 billion in assets under management. The firm provides asset management, investment banking and capital markets services, insurance, institutional finance and investment advisory solutions to institutions, governments and agencies, corporations, investment advisors, family offices and individuals. Guggenheim Partners is headquartered in New York and Chicago and serves clients throughout North America, Europe and Asia from more than 25 offices in 10 countries.
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 15 March 2011 under the heading “Risk Factors.” Copies of this document are readily available upon request or can be downloaded from www.deutsche-bank.com/ir.
Issued by the press department of Deutsche Bank AG
Taunusanlage 12, 60325 Frankfurt am Main
Phone +49 (0) 69 910 43800, Fax +49 (0) 69 910 33422
Neil Anderson, Managing Editor
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