Deutsche Bank AG (DBKGn.DE) is poised to swoop on rival Deutsche Postbank AG (DPBGn.DE) in a deal valuing the retail lender at roughly $13 billion, sources with direct knowledge of the matter said.
It is set to be the second bumper all-German banking deal in as many weeks after Commerzbank AG (CBKG.DE) bought Dresdner. The sale could herald a windfall for shareholders in Deutsche Post AG (DPWGn.DE), which is surrendering control of the bank.
Two sources familiar with the matter said Deutsche Bank would buy an initial stake of 29.75 percent in Postbank for about 57 euros per share, in an accord set to be waved through by Post's supervisory board on Friday.
Staying below 30 percent means Deutsche does not have to launch a full-blown takeover now. The plan is to snap up more from Post later, triggering what would be Deutsche Bank's biggest takeover in a decade.
Postbank stock came off early highs to trade up 2.7 percent at 47.00 euros by mid-morning, while Post shares were up 2.1 percent. Deutsche Bank was up 0.6 percent.
BOOM AND BUST
Deutsche Bank's move comes in the wake of investor frustration with the group's overdependence on its now-flagging investment bank. Shareholders have been pushing for a stronger retail bank to counter the boom and bust of the financial markets.
A takeover of Postbank -- which Deutsche boss Josef Ackermann turned down before its 2004 stock-market listing at 28.50 euros a share -- also keeps Spain's Banco Santander SA (SAN.MC), which was also stalking Postbank, off its doorstep.
JP Morgan, however, said the deal -- Deutsche Bank's biggest since buying Bankers Trust -- made little strategic sense and was a defensive move to block Santander. "Deutsche Bank would not be interested in having Santander and Postbank in their back yard," its analysts wrote.
It is unclear how Deutsche will pay for the acquisition. It has been stretched as its bill from the financial crisis swelled beyond $11 billion, putting it among the top 10 global casualties of the turmoil.
Deutsche Bank has more than 900 branches in Germany, while Postbank has 850 of its own branches plus access to thousands of post offices where it sells bank services over the counter.
Postbank is one of the few remaining retail banking prizes after Deutsche Bank was outbid by a French bank in July for Citigroup's (C.N) small-loans business in Germany.
(Writing by John O'Donnell; Editing by David Holmes)
