It's official. The deal between two European financial pillars -- Deutsche Bank and Zurich Financial Services -- has survived the collapse of both the World Trade towers and the stock market.

After a weeks delay due to the crisis, the two firms hammered out the deal over the weekend. The deal lands Scudder Kemper, one of this nation's larger fund firms in new hands, and involves the exchange of $1.5 billion in cash and $1.0 billion in other European life insurance assets.

Tom Hughes of Deutsche Asset Management will head the merged operations as chief executive according to the agreed upon plans. Meanwhile, Edmond Villani, Zurich Scudder's cheif executive will take the post of chairman.

Scudder employees own a reported 20 percent stake in the firm and will sell that stake to Deutsche as part of the agreed upon, but not yet finalized deal. Zurich will retain its United Kingdom-based Threadneedle Investments.

Zurich will receive a majority stake in Deutsche's insurance business, Deutscher Herold, and in insurance operations in Italy, Spain and Portugal.

Deutsche already owns significant US-based asset management properties after having acquired Bankers Trust and its BT Alex Brown business. Scudder's $300 billion in assets under management will bring the firm's total to some $900 billion. 

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