Bidders eye up Deutsche’s arms for sale

BIDDERS for much of the asset management arm of Deutsche Bank are set to make initial offers by the end of this week.

They will make indicative bids –  which are not binding – giving Germany’s flagship lender a chance to consider the level of interest and the cash on the table.

The bank, which declined to comment on “speculation”, is likely to make a decision on whether to proceed with a sale of the businesses in the next fortnight.

Up to 50 banks, insurers, asset managers and private equity houses are believed to have expressed an interest. Last month sources said BNY Mellon, Blackrock, JP Morgan, Goldman were among interested parties to have been given information on the assets.

Deutsche has long been thought to lack the scale to compete in asset management and a deal for the non-core businesses could raise between €1bn (£826m) and €3bn.

It began a strategic review of much of its €516bn asset management arm in November, prompted by changing conditions in the industry, including regulatory reforms.

The review covered Deutsche’s institutional investor business, DB Advisors; its alternative asset business RREEF; an insurance asset management business; and its DWS Investments mutual fund business in the Americas.

It excluded, however, private wealth management and Deutsche’s DWS franchises in Germany, Europe and Asia, which are the most profitable parts of the bank’s asset management segment.

Deutsche’s last results showed a forecast-beating third quarter pre-tax profit of €942m.