aaron-kirchfeld

Merckle Drug Wholesaler Phoenix Said to Be Near $4.4 Billion Funding Deal

by on June 16, 2010

By Aaron Kirchfeld and Angela Cullen June 16 (Bloomberg) — Phoenix Group , the indebted drug wholesaler started by deceased billionaire Adolf Merckle , is close to obtaining as much as 3.6 billion euros ($4.4 billion) in financing, said two people familiar with the negotiations. Phoenix, based in Mannheim, Germany, may reach an agreement with banks by early next month on 2.6 billion euros in syndicated loans to refinance existing debt, said the people, who spoke on condition of anonymity. The company also has plans to sell as much as 1 billion euros in hybrid bonds, according to these people. The deal marks the final chapter in the downfall of Merckle, who committed suicide in January 2009 after wrong-way bets on the stock market that brought companies spanning the cement and drug industries to the brink of collapse. His death left son and sole heir, Ludwig, to negotiate new loans with the family’s lenders and divest assets. A spokesman for Phoenix, Olaf Teichert, couldn’t be immediately reached for comment by phone or by e-mail. Ludwig Merckle ’s spokeswoman couldn’t immediately comment. Merckle agreed to sell generic-drug maker Ratiopharm GmbH to Teva Pharmaceutical Industries Ltd. in March for 3.63 billion euros. He also sold part of his stake in HeidelbergCement AG and Swiss drugmaker Mepha Gruppe in the last 12 months. As part of the refinancing plan, Ludwig Merckle agreed to inject 500 million euros in cash and repay a loan to Phoenix, they said. Merckle’s VEM Vermoegensverwaltung GmbH investment vehicle borrowed as much as 500 million euros from Phoenix as the family patriarch sought to stem his losses, the people said. The refinancing is aimed at bolstering Phoenix’s credit standing as it considers selling as much as 25 percent of Phoenix in an initial public offering in the next year, one of the people said. Phoenix may also sell smaller assets valued at less than 200 million euros, the other person said. To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net ; To contact the reporter on this story: Angela Cullen in Frankfurt at acullen8@bloomberg.net ;

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Merckle Drug Wholesaler Phoenix Said to Be Near $4.4 Billion Funding Deal

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Deutsche Bank Names Anshu Jain as Sole Head of Its Investment-Banking Unit

by on June 15, 2010

By Aaron Kirchfeld June 15 (Bloomberg) — Deutsche Bank AG, Germany’s biggest bank, named Anshu Jain the sole head of the corporate and investment bank. The company commented in a statement on its website today.

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Deutsche Bank Bonuses to Be Partly Based on Performance Against Six Peers

May 27, 2010

By Aaron Kirchfeld and Jann Bettinga May 27 (Bloomberg) — Deutsche Bank AG ’s longer-term bonuses for management board members will be partially based on the company’s stock performance compared to six peers, including Goldman Sachs Group Inc. and BNP Paribas SA. Frankfurt-based Deutsche Bank also plans to introduce a system allowing the company to cap or eliminate shorter-term bonuses based on profitability targets, supervisory board Chairman Clemens Boersig said today. The rules are part of a new compensation policy that shareholders will vote on today at the annual meeting in Frankfurt. The longer-term bonuses will be based on share price performance and dividends over three years, compared with a group consisting of Goldman Sachs, BNP Paribas, JPMorgan Chase & Co., Banco Santander SA, Barclays Plc and Credit Suisse Group AG, he said. If Deutsche Bank doesn’t match the lower threshold, no payment is made and if it exceeds the goal it will be capped at 25 percent above the peer group. The short-term bonuses will be based on the bank’s return- on-equity target and absolute ROE over a two-year period, Boersig said. If Deutsche Bank misses the target by more than 50 percent, no short-term bonus will be paid, and the amount by which the goal can be exceeded will be capped at 50 percent for compensation calculations. “Our compensation system ensures that the interests of the management board members are aligned with those of our shareholders on a permanent basis, which very clearly underlines the sustainable, long-term nature of our compensation,” Boersig said. Governments in Europe and the U.S. are facing pressure to limit bankers’ compensation after some financial firms were bailed out by taxpayers. Chief Executive Officer Josef Ackermann has warned of a regulatory and political “backlash” if his industry doesn’t change its pay practices. To contact the reporters on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net Jann Bettinga in Frankfurt at jbettinga@bloomberg.net .

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Deutsche Bank’s Profit Jumps 48%, Beating Estimates on Investment Banking

April 26, 2010

By Aaron Kirchfeld and Jann Bettinga April 27 (Bloomberg) — Deutsche Bank AG , Germany’s biggest bank, said first-quarter profit rose 48 percent, surpassing analysts’ estimates, on gains at the investment bank. Net income rose to 1.76 billion euros ($2.35 billion) from 1.19 billion euros in the year-earlier period, the Frankfurt- based bank said a statement today. Earnings beat the 1.33 billion-euro average forecast of analysts surveyed by Bloomberg. The investment-banking unit, led by Anshu Jain and Michael Cohrs , reported a doubling in pretax profit to 2.6 billion euros in the quarter, buoyed by debt and equity trading. Bank of America Corp. , JPMorgan Chase & Co. and Goldman Sachs Group Inc. posted record revenue from debt trading earlier this month. “Deutsche Bank has a very strong position in fixed income and the U.S. peers have shown how well debt trading is going,” said Lutz Roehmeyer , who helps manage about $16 billion at Landesbank Berlin Investment including Deutsche Bank shares. “It’d be a disappointment if Deutsche Bank didn’t beat estimates after what competitors reported.” Deutsche Bank has risen 12 percent in Frankfurt trading this year, compared with a 2.6 percent gain in the 52-member Bloomberg Europe Banks and Financial Services Index. The company has a market value of 34.4 billion euros. JPMorgan, Bank of America and Goldman Sachs beat analysts’ estimates for first-quarter earnings, helped by debt trading, while UBS AG posted the highest pretax profit in almost three years, in part because of a recovery at its fixed-income unit. Credit Suisse Group AG last week fell the most in more than two months in Zurich after missing a gain in debt trading that helped lift earnings at rivals. Earnings Goals Deutsche Bank Chief Executive Officer Josef Ackermann pledged in December to double pretax profit at the operating businesses by 2011 to 10 billion euros from 2009, helped by gains in investment banking and Asia. The bank is likely to reach 7.6 billion euros in pretax profit next year, based on the median estimate of 12 analysts surveyed by Bloomberg. Ackermann, 62, has been seeking to reduce dependence on the investment bank by making acquisitions . Deutsche Bank completed the purchase of Sal. Oppenheim Group, Germany’s biggest independent private bank, and parts of ABN Amro Bank NV’s commercial lending activities in the Netherlands this year. It also bought a stake in Deutsche Postbank AG and has an option to raise the holding. To contact the reporters on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net Jann Bettinga in Frankfurt at jbettinga@bloomberg.net .

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BayernLB Ends Business Relationship With Goldman Sachs on SEC Fraud Suit

April 21, 2010

By Aaron Kirchfeld and Frances Robinson April 21 (Bloomberg) — Bayerische Landesbank, Germany’s second-biggest state-owned lender, has ended its business relationship with Goldman Sachs Group Inc. after allegations of fraud by the U.S. Securities and Exchange Commission against the New York-based firm, a spokesman for the German lender said. Munich-based BayernLB spokesman Matthias Priwitzer confirmed a previous report in German newspaper Handelsblatt by telephone today. He declined to provide further details.

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Daimler Returns to First-Quarter Profit on Sales of Mercedes-Benz Vehicles

April 19, 2010

By Aaron Kirchfeld April 19 (Bloomberg) — Daimler AG , the world’s second- biggest maker of luxury cars, returned to profit in the first quarter, helped by the sale of Mercedes-Benz cars. The Stuttgart-based carmaker reported preliminary earnings before interest and taxes including special items of 1.2 billion euros ($1.6 billion) after a loss of 1.4 billion euros in the year-earlier period, Daimler said in a statement today. Revenue was 21.2 billion euros in the period. Profit was boosted by “very solid results” at the Mercedes-Benz Cars unit, which reported Ebit of 806 million euros, on “strong” sales, model mix and pricing as well as a “favorable overall cost position,” Daimler said. The Mercedes- Benz Cars unit expects Ebit of 2.5 billion euros to 3 billion euros from ongoing business this year, the company said. The Daimler Trucks unit posted first-quarter Ebit of 130 million euros and forecast full-year profit of 500 million euros to 700 million euros. Daimler Financial Services had first- quarter Ebit of 119 million euros, the company said. To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net

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BASF Said to Prepare 3 Billion-Euro Bid for Germany’s Cognis

April 9, 2010

By Angela Cullen, Aaron Kirchfeld and Richard Weiss April 9 (Bloomberg) — BASF SE is preparing a bid for Cognis GmbH that may value the privately held chemical maker at about 3 billion euros ($4 billion), according to two people with knowledge of the situation. BASF, the world’s biggest chemical producer, may make an offer as early as next week, said the people, who declined to be identified because the plans are private. A U.S. bidder is also interested in buying Cognis, which is owned by Goldman Sachs Group Inc. and Permira Advisers Ltd., one of the people said. BASF spokeswoman Jennifer Moore-Braun declined to comment. Cognis would help Chief Executive Officer Juergen Hambrecht reduce BASF’s reliance on plastics and chemicals that Middle East competitors produce more cheaply. The former Henkel AG unit , sold to the buyout firms in 2001, is attracting bidders with its range of ingredients for body lotions, cleaning products and shampoos, products that are more resistant to economic cycles than those directly derived from oil and gas. “Cognis is strong in home and personal care chemicals based on natural raw materials,” said Andreas Heine , an analyst at UniCredit SpA. “Whoever owns Cognis, owns the global market leader. It would be the right addition for BASF. We believe Cognis will be sold this year.” Reviewing Options The owners of Cognis are reviewing their options and will decide in coming weeks whether to sell the company or pursue an initial public offering, another person said. Venture capital company SV Life Sciences also owns a stake in Cognis. Cognis’s equity value compared with peers including British competitor Croda International Plc limits the amount it may generate in an IPO, making a sale to a strategic investor more likely, according to credit analyst Jochen Schlachter of UniCredit SpA in Munich. A purchase would be BASF’s biggest since its takeover of Ciba Holding AG for $5 billion last year. Hambrecht said in February he would avoid any big acquisitions until the integration of Ciba was completed. He said in January that BASF has made more progress toward a savings goal from the merger. Hambrecht is streamlining the company to move out of lower- margin businesses, and the company is looking for a buyer for its styrene operations. Dow Chemical Co. agreed last month to sell its Styron unit, the world’s biggest producer of polystyrene plastic, to Bain Capital Partners for about $1.63 billion to pay down debt and focus on higher-value materials. Cutting Jobs Dusseldorf-based Cognis, which employs about 5,600 people, has reduced its number of workers by 39 percent since the end of 2001. It was sold by Henkel for 2.5 billion euros after the maker of Loctite glues and Persil detergent chose to focus on consumer and industrial products. Cognis is in the process of creating a prospectus for a share sale should its owners decide to list the company, Chief Executive Officer Antonio Trius said on March 24. He forecast rising sales and operating profit this year. The German company posted 2009 profit of 25 million euros, following a loss of 49 million euros in 2008. Net debt stood at 1.87 billion euros as of Dec. 31. Sales fell 14 percent to 2.58 billion euros as earnings before interest and taxes rose 3 percent to 195 million euros. To contact the reporters on this story: Angela Cullen in Frankfurt at acullen8@bloomberg.net ; Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net ; Richard Weiss in Frankfurt at rweiss5@bloomberg.net

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BASF Said to Be Preparing $4 Billion Bid for German Chemical Maker Cognis

April 9, 2010

By Angela Cullen, Aaron Kirchfeld and Richard Weiss April 9 (Bloomberg) — BASF SE is preparing a bid for Cognis GmbH that may value the privately held chemical maker at about 3 billion euros ($4 billion), according to two people with knowledge of the situation. BASF, the world’s biggest chemical producer, may make an offer as early as next week, said the people, who declined to be identified because the plans are private. A U.S. bidder is also interested in buying Cognis, which is owned by Goldman Sachs Group Inc. and Permira Advisers Ltd., one of the people said. BASF spokeswoman Jennifer Moore-Braun declined to comment. Cognis would help Chief Executive Officer Juergen Hambrecht reduce BASF’s reliance on plastics and chemicals that Middle East competitors produce more cheaply. The former Henkel AG unit , sold to the buyout firms in 2001, is attracting bidders with its range of ingredients for body lotions, cleaning products and shampoos, products that are more resistant to economic cycles than those directly derived from oil and gas. “Cognis is strong in home and personal care chemicals based on natural raw materials,” said Andreas Heine , an analyst at UniCredit SpA. “Whoever owns Cognis, owns the global market leader. It would be the right addition for BASF. We believe Cognis will be sold this year.” Reviewing Options The owners of Cognis are reviewing their options and will decide in coming weeks whether to sell the company or pursue an initial public offering, another person said. Venture capital company SV Life Sciences also owns a stake in Cognis. Cognis’s equity value compared with peers including British competitor Croda International Plc limits the amount it may generate in an IPO, making a sale to a strategic investor more likely, according to credit analyst Jochen Schlachter of UniCredit SpA in Munich. A purchase would be BASF’s biggest since its takeover of Ciba Holding AG for $5 billion last year. Hambrecht said in February he would avoid any big acquisitions until the integration of Ciba was completed. He said in January that BASF has made more progress toward a savings goal from the merger. Hambrecht is streamlining the company to move out of lower- margin businesses, and the company is looking for a buyer for its styrene operations. Dow Chemical Co. agreed last month to sell its Styron unit, the world’s biggest producer of polystyrene plastic, to Bain Capital Partners for about $1.63 billion to pay down debt and focus on higher-value materials. Cutting Jobs Dusseldorf-based Cognis, which employs about 5,600 people, has reduced its number of workers by 39 percent since the end of 2001. It was sold by Henkel for 2.5 billion euros after the maker of Loctite glues and Persil detergent chose to focus on consumer and industrial products. Cognis is in the process of creating a prospectus for a share sale should its owners decide to list the company, Chief Executive Officer Antonio Trius said on March 24. He forecast rising sales and operating profit this year. The German company posted 2009 profit of 25 million euros, following a loss of 49 million euros in 2008. Net debt stood at 1.87 billion euros as of Dec. 31. Sales fell 14 percent to 2.58 billion euros as earnings before interest and taxes rose 3 percent to 195 million euros. To contact the reporters on this story: Angela Cullen in Frankfurt at acullen8@bloomberg.net ; Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net ; Richard Weiss in Frankfurt at rweiss5@bloomberg.net

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Teva Said to Beat Pfizer, Actavis in $4.8 Billion Ratiopharm Acquisition

March 18, 2010

By Aaron Kirchfeld and Naomi Kresge March 18 (Bloomberg) — Teva Pharmaceutical Industries Ltd. is close to an agreement to buy Ratiopharm GmbH for about 3.5 billion euros ($4.78 billion), ending a nine-month battle for Germany’s second-biggest maker of generic medicines, two people familiar with knowledge of the sale said. Petah Tikva, Israel-based Teva beat Pfizer Inc. and Actavis Group hf, which also competed in the auction, according to the people, who declined to be named as the process isn’t public. It is Teva’s biggest purchase since buying Barr Pharmaceuticals Inc. for $7.4 billion in 2008. Ratiopharm would give the Israeli drugmaker a top spot in the $8.6 billion German market for copied drugs, the world’s second-largest after the U.S., according to Norwalk, Connecticut-based IMS Health Inc. Teva would be paying about 2.2 times 2009 sales, more than the 1.5 times multiple Cephalon Inc. agreed to pay for Ratiopharm’s Swiss affiliate Mepha Gruppe last month. “It’s the last major piece in the jigsaw for Teva in Europe,” said Frances Cloud , an independent analyst in London, in an interview before the agreement was announced. “It will put them comfortably in the frame to deliver their 2015 targets for Europe.” Teva spokesman Yossi Koren declined to comment. Ratiopharm, based in Ulm, has scheduled a press conference for 2 p.m. local time in Cologne today. Vivien Kremer , a spokeswoman for Ratiopharm’s investment holding, also declined to comment. Takeovers and growth outside the U.S., Teva’s largest market, are part of Chief Executive Officer Shlomo Yanai ’s goal to more than double annual revenue to $31 billion by 2015 as rising health-care costs push patients and policy makers toward lower-priced copied drugs. Teva gets less than 25 percent of its sales in Europe. Competition The Israeli company, which is the world’s largest maker of generic drugs, is targeting $6.8 billion in net income five years from now while absorbing $1 billion in lost revenue as a result of competition for Copaxone, its top-selling product, Yanai told analysts in New York in January. Ratiopharm was put up for sale in June as owner Ludwig Merckle sought funds to repay debt amassed by his father Adolf Merckle , Ratiopharm’s founder, who committed suicide in January 2009 after making wrong-way bets on the stock market. Mepha was also sold by the Merckles. The German company reported 307 million euros in earnings before interest, tax, depreciation and amortization last year on 1.6 billion euros in revenue. The takeover would catapult Teva into the top three generic-drug makers in Germany, alongside Novartis AG’s Hexal unit and Stada Arzneimittel AG . The deal also gives it 3 of the top 10 generic products by volume in the German retail drug market and 5 of the top 10 generic drugs sold to hospitals, according to data from IMS Health. The Israeli drugmaker up to now had none of the top generics in Germany. Teva last year bought stakes in OncoGenex Pharmaceuticals Inc., gaining rights to an experimental cancer therapy, and Taisho Pharmaceutical Industries Ltd., increasing its access to the Japanese generic-drug market. To contact the reporters on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net ; Naomi Kresge in Zurich at nkresge@bloomberg.net

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Teva Said to Beat Pfizer, Actavis in $4.8 Billion Ratiopharm Acquisition

March 18, 2010

By Aaron Kirchfeld and Naomi Kresge March 18 (Bloomberg) — Teva Pharmaceutical Industries Ltd. is close to an agreement to buy Ratiopharm GmbH for about 3.5 billion euros ($4.78 billion), ending a nine-month battle for Germany’s second-biggest maker of generic medicines, two people familiar with knowledge of the sale said. Petah Tikva, Israel-based Teva beat Pfizer Inc. and Actavis Group hf, which also competed in the auction, according to the people, who declined to be named as the process isn’t public. It is Teva’s biggest purchase since buying Barr Pharmaceuticals Inc. for $7.4 billion in 2008. Ratiopharm would give the Israeli drugmaker a top spot in the $8.6 billion German market for copied drugs, the world’s second-largest after the U.S., according to Norwalk, Connecticut-based IMS Health Inc. Teva would be paying about 2.2 times 2009 sales, more than the 1.5 times multiple Cephalon Inc. agreed to pay for Ratiopharm’s Swiss affiliate Mepha Gruppe last month. “It’s the last major piece in the jigsaw for Teva in Europe,” said Frances Cloud , an independent analyst in London, in an interview before the agreement was announced. “It will put them comfortably in the frame to deliver their 2015 targets for Europe.” Teva spokesman Yossi Koren declined to comment. Ratiopharm, based in Ulm, has scheduled a press conference for 2 p.m. local time in Cologne today. Vivien Kremer , a spokeswoman for Ratiopharm’s investment holding, also declined to comment. Takeovers and growth outside the U.S., Teva’s largest market, are part of Chief Executive Officer Shlomo Yanai ’s goal to more than double annual revenue to $31 billion by 2015 as rising health-care costs push patients and policy makers toward lower-priced copied drugs. Teva gets less than 25 percent of its sales in Europe. Competition The Israeli company, which is the world’s largest maker of generic drugs, is targeting $6.8 billion in net income five years from now while absorbing $1 billion in lost revenue as a result of competition for Copaxone, its top-selling product, Yanai told analysts in New York in January. Ratiopharm was put up for sale in June as owner Ludwig Merckle sought funds to repay debt amassed by his father Adolf Merckle , Ratiopharm’s founder, who committed suicide in January 2009 after making wrong-way bets on the stock market. Mepha was also sold by the Merckles. The German company reported 307 million euros in earnings before interest, tax, depreciation and amortization last year on 1.6 billion euros in revenue. The takeover would catapult Teva into the top three generic-drug makers in Germany, alongside Novartis AG’s Hexal unit and Stada Arzneimittel AG . The deal also gives it 3 of the top 10 generic products by volume in the German retail drug market and 5 of the top 10 generic drugs sold to hospitals, according to data from IMS Health. The Israeli drugmaker up to now had none of the top generics in Germany. Teva last year bought stakes in OncoGenex Pharmaceuticals Inc., gaining rights to an experimental cancer therapy, and Taisho Pharmaceutical Industries Ltd., increasing its access to the Japanese generic-drug market. To contact the reporters on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net ; Naomi Kresge in Zurich at nkresge@bloomberg.net

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Siemens Said to Consider Pulling Hearing-Aid Unit Sale If Bids Fall Short

February 22, 2010

By Aaron Kirchfeld and Anne-Sylvaine Chassany Feb. 22 (Bloomberg) — Siemens AG may call off the sale of its hearing aids subsidiary if bids fail to come in at the company’s expected price of at least 2 billion euros ($2.7 billion), two people familiar with the auction said. At least two of the potential buyers are offering less than 2 billion euros, with a deadline for bids tonight, said the people, who declined to be identified because talks are private. A partnership of Kohlberg Kravis Roberts & Co., Hellman and Friedman LLC and Cochlear Ltd., as well as Cinven Ltd., Bain Capital LLC and a group including Permira Advisers LLP and Nordic Capital are interested, the people said. Siemens , Germany’s biggest engineering company, is reviewing a sale of the unit as it retreats from consumer- oriented businesses. Chief Financial Officer Joe Kaeser said last month that the division is “very successful” and “highly profitable,” and no decision has been made on whether to sell. Some suitors underbid Siemens’s asking price because the unit requires investments in the distribution network, the people said. The division may attract offers as low as 1.5 billion euros, one of the people said. The Munich-based company hired UBS AG to manage a possible sale, people familiar with the plan said in December. KKR and Permira and Cochlear in the U.S. couldn’t be immediately reached for comment while Cinven, Bain, Permira and Hellman and Friedman declined to comment. Siemens spokesman Constantin Birnstiel couldn’t immediately be reached for comment. Reuters reported that the sale may be canceled earlier today, citing unidentified people close to the matter. The German company doesn’t disclose sales for hearing aids. The unit may have annual revenue of about 680 million euros, according to estimates by Daniel Jelovcan , a health-care products analyst at Helvea AG in Zurich. To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net

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Ackermann Says High-Paying Banks Had Significantly Fewer Losses in Crisis

February 19, 2010

By Zoe Schneeweiss and Aaron Kirchfeld Feb. 19 (Bloomberg) — Deutsche Bank AG Chief Executive Officer Josef Ackermann said some high-paying banks suffered fewer losses than competitors during the financial crisis, suggesting that higher compensation levels can’t be blamed for the industry’s problems. “Is there a correlation between the compensation system and losses? Yes, but it’s negative,” Ackermann said today at a conference in Innsbruck, Austria, describing his viewpoint as provocative. “Those who paid well had significantly fewer losses,” he said, adding that “one shouldn’t blame everything on compensation policies.” Ackermann cited Frankfurt-based Deutsche Bank, Goldman Sachs Group Inc. of New York, Zurich-based Credit Suisse Group AG and Barclays Plc of London as examples of financial companies that paid employees well and navigated well through the crisis. There were a few opposite examples, he added. High pay wasn’t an issue at Germany’s state-owned banks, also known as Landesbanken, or Hypo Real Estate Holding AG , Ackermann said. State-owned banks including WestLB AG and BayernLB as well as commercial-property lender Hypo Real Estate needed government bailouts during the financial crisis. Deutsche Bank, Germany’s biggest bank, introduced a sliding scale forcing top bankers to defer a bigger proportion of their bonuses starting in 2009, said two people with direct knowledge of the plan earlier this week. Ackermann, who has warned of a regulatory and political “backlash” if his industry doesn’t change pay policies, reiterated this month he would bring the company’s compensation policy into line with the Group of 20’s principles. He said on Feb. 4 that he expects industry pay to decline in coming years. Deutsche Bank, which didn’t need state aid, is increasing employees ’ fixed pay by 5 percent to 30 percent, in turn reducing bonus payments by an equal amount. The bank may also claw back bonus payments in the event of losses, including from managing directors. To contact the reporters on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net ; Zoe Schneeweiss at zschneeweiss@bloomberg.net

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Deutsche Bank Posts Fourth Straight Quarterly Profit on Rebound in Trading

February 4, 2010

By Aaron Kirchfeld and Jann Bettinga Feb. 4 (Bloomberg) — Deutsche Bank AG , Germany’s biggest bank, posted its fourth straight quarterly profit on a rebound in trading, cementing a turnaround after reporting a record loss a year earlier. The Frankfurt-based bank had net income of 1.3 billion euros ($1.8 billion) in the fourth quarter after a loss of 4.8 billion euros in the year-earlier period, it said in a DGAP statement today. Earnings surpassed the 650 million-euro median estimate of analysts surveyed by Bloomberg. Deutsche Bank, like New York-based Goldman Sachs Group Inc. and JPMorgan Chase & Co., recorded a rebound in profit last year after emerging from the worst financial crisis since the Great Depression. Revenue from trading declined in the fourth quarter as business slowed before year-end and competition increased, shrinking margins. “Deutsche Bank is a relative winner of the crisis within the investment-banking world,” said Andrew Lynch , who helps manage about $2 billion at Schroder Investment Management in London, including Deutsche Bank shares. He spoke before the earnings were published. Deutsche Bank has gained 122 percent to 45.82 euros in Frankfurt trading over the last 12 months, compared with a 57 percent gain in the 52-company Bloomberg Europe Banks and Financial Services Index . Fourth-quarter net income reflected a tax benefit of 554 million euros, the company said. Acquisitions JPMorgan more than doubled earnings in 2009 to $11.7 billion, while profit at Goldman rose by more than five times to $13.4 billion. Deutsche Bank earned 5 billion euros in 2009. Deutsche Bank Chief Executive Officer Josef Ackermann , 61, is trying to reduce the company’s dependence on investment banking, which accounts for more than two-thirds of group profit , by making acquisitions. He agreed in October to buy Sal. Oppenheim Group, Germany’s biggest independent private bank, and ABN Amro Holding NV’s commercial-banking operations in the Netherlands. The bank also purchased a stake in German retail lender Deutsche Postbank AG and has an option to increase the holding. “The business model is still tilted toward investment banking, but you can’t turn a super tanker around on a dime,” said Lynch. Obama Impact Deutsche Bank said in December that pretax profit may reach a record 10 billion euros in 2011 as it boosts earnings at the corporate and investment bank, helped by market share gains, and expands in Asia. Pretax earnings at the investment bank may rise 50 percent from the level in 2007 to 6.3 billion euros in the same period, the company forecast. U.S. President Barack Obama last month surprised bankers by throwing his support behind a plan from former Federal Reserve Chairman Paul Volcker that would impose new rules on bank size and bar banks from owning or sponsoring hedge funds and private- equity funds, as well as engaging in so-called proprietary trading that’s not related to clients. Ackermann said last week at the World Economic Forum in Davos, Switzerland that Obama’s proposed financial industry regulations would have a “marginal impact” on Deutsche Bank because the German company has exited “the bulk” of activities targeted in the proposal. He also voiced opposition to breaking up large banks. “Deutsche Bank has done well in its peer group, but the problem is that the whole industry is under a lot of pressure from regulators,” said Schroder’s Lynch. “There’s an existential risk to the business model.” To contact the reporters on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net ; Jann Bettinga in Frankfurt at jbettinga@bloomberg.net .

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Deutsche Bank Seeks $14.7 Billion in Pretax Profit by 2011 on Asia Revenue

December 14, 2009

By Aaron Kirchfeld and Jann Bettinga Dec. 14 (Bloomberg) — Deutsche Bank AG , Germany’s biggest bank, said pretax profit may reach a record 10 billion euros ($14.7 billion) in 2011 as it boosts earnings at the corporate and investment bank and expands in Asia. The bank earned 7.21 billion euros before tax in 2007 from the operating businesses of its corporate and investment bank, asset management and consumer banking units. The new target refers to earnings from the operating businesses before one-time gains and losses and assuming markets and asset values stabilize, the Frankfurt-based bank said in a statement today. Chief Executive Officer Josef Ackermann aims to increase profit at the investment bank, raise revenue from Asia and expand asset management and retail banking. Net revenue in the Asia-Pacific region, excluding Japan, may almost double to about 4 billion euros by 2011. Investment banking profit is forecast to rise 50 percent to 6.3 billion euros from the 2007 level. “Deutsche Bank has demonstrated resilience through an exceptionally difficult period for our industry and the global economy,” Ackermann, 61, said in the statement. “This leaves us very well positioned to outperform and to deliver significant, profitable growth for our shareholders.” Deutsche Bank gained 3.4 percent to 49.40 euros in Frankfurt trading, boosting the year-to-date increase to 78 percent. That outpaces a 40 percent gain in the 64-company Bloomberg Europe Banks and Financial Services Index . Unit Goals Deutsche Bank said it expects profit to grow in investment banking, helped by market share gains and an anticipated 9 percent average annual increase in the global fee pool for all banks. Global transaction banking may achieve pretax profit of about 1.3 billion euros, up from 945 million euros in 2007, Ackermann said. The retail banking division will contribute 1.5 billion euros to 2011 pretax profit, compared with 1.15 billion euros in 2007, and the asset and wealth management unit will add 1 billion euros, up from 913 million euros, the bank forecast. The bank targets annual revenue growth of about 8 percent for 2011, Ackermann said. Deutsche Bank stuck to goals for a pretax return on equity of about 25 percent over the business cycle, and a Tier 1 capital ratio of more than 10 percent. It doesn’t expect any “significant” writedowns in 2010 or 2011. Acquisition Plans Deutsche Bank made acquisitions this year to cut reliance on investment banking, which accounts for more than two-thirds of group profit. It agreed in October to buy Sal. Oppenheim Group, Germany’s biggest independent private bank, and ABN Amro Holding NV’s commercial-banking operations in the Netherlands. The bank also purchased a stake in German retail lender Deutsche Postbank AG this year and has an option to increase the holding. Ackermann said the bank is in talks to sell pieces of Sal. Oppenheim. Deutsche Bank has almost 30 percent of Postbank and is in no hurry to increase the stake, he said. Deutsche Bank doesn’t plan a capital increase except possibly for further acquisitions, Ackermann said. The company has “absolutely no intention yet to make major acquisitions” in Asia or at the retail and asset management business, he said. Ackermann said the bank will continue to pay “market rates and reward people on contributions,” and the company aims to keep “flexibility” on compensation as long as possible. Deutsche Bank has completed cutting risk in its business model, Ackermann said. “In terms of balance-sheet size and the potential to do business, we’re happy with what we’ve achieved, so there’s absolutely no limit to our growth from a balance sheet point of view,” Ackermann told analysts. “We will just continue to reduce legacy and level 3 assets.” So-called level 3 assets are the hardest to value and trade. To contact the reporters on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net Jann Bettinga in Frankfurt at jbettinga@bloomberg.net ; To contact the reporter on this story:

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Siemens Said to Hire UBS for Possible Sale or IPO of Hearing-Aid Division

December 2, 2009

By Aaron Kirchfeld Dec. 2 (Bloomberg) — Siemens AG , Europe’s biggest engineering company, is hiring UBS AG to advise on a possible sale of its hearing-aid division, three people familiar with the matter said. Siemens, based in Munich, will also consider an initial public offering of the unit, said the people, who declined to be identified because the talks are private. The Zurich-based bank may send out information on the business to potential buyers as soon as this month, one of the people said. The division, valued at 2 billion euros ($3 billion) to 3 billion euros, may draw interest from private-equity firms including KKR & Co. LP and BC Partners Ltd., two people familiar with the matter said last week. Siemens claims the No. 1 position in the global hearing aid market by units manufactured. It trails Sonova Holding AG of Switzerland and William Demant Holding A/S of Denmark by market share, according to Sonova. Siemens, Europe’s largest engineering company, has sharpened its focus on infrastructure, energy, transport and sold assets such as mobile phones. Siemens, which also makes high-speed trains, power grids and medical scanners, doesn’t disclose sales for its hearing aids. The company has been making the products for more than 100 years, and the business is based in Erlangen in southern Germany, home to some of Siemens’s largest production sites. Marc Langendorf , a Siemens spokesman, declined to comment. A spokeswoman for UBS in Frankfurt couldn’t immediately comment UBS ranks as the No. 4 adviser on takeovers announced in Europe this year, down from the second spot in 2008, according to data compiled by Bloomberg. Hermann Requardt , the chief executive officer of Siemens’s health-care division, said on Sept. 29 at a meeting with analysts and investors that the hearing aids are “a very solid business and a strong contributor.” The company reports earnings for its fiscal full year tomorrow, and Chief Executive Officer Peter Loescher will hold a press conference in Munich. To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net

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Siemens Hearing-Aid Division Said to Draw Interest From KKR, BC Partners

November 26, 2009

By Aaron Kirchfeld Nov. 27 (Bloomberg) — Siemens AG’s hearing aid business, valued at as much as 3 billion euros ($4.5 billion), is drawing interest from private-equity firms including KKR & Co. L.P. and BC Partners Ltd., two people familiar with the matter said. Several financial investors have contacted the Munich-based company about buying the unit, said the people, who requested anonymity because the process isn’t public. Siemens has been in contact with investment banks about options, and hasn’t decided whether to sell the unit or conduct an initial public offering, though an exit from the business is likely, the people said. Siemens claims the No. 1 position in the global hearing aid market by units manufactured. It trails Sonova Holding AG of Switzerland and William Demant Holding A/S of Denmark by market share, according to Sonova. Siemens, Europe’s largest engineering company, is weighing a retreat from the industry to sharpen its focus on energy, transport and infrastructure, as well as on medical diagnostics tools, the people said. In addition to private-equity firms, makers of medical equipment may also be interested, the people said. Antitrust hurdles would bar Sonova and William Demant from a takeover, the people said. Siemens spokesman Constantin Birnstiel declined to comment, as did spokespeople for KKR and BC Partners in Germany. High Margins “Siemens hearing aids is attractive because the sector has relatively high margins and the business could be further improved by a new owner,” said Daniel Jelovcan , a Zurich-based health-care products analyst at Helvea AG. He estimates the unit could be valued at 2.5 billion euros to 3 billion euros, based on estimated sales of 680 million euros and peer valuation. Siemens, which also makes high-speed trains, power grids and medical scanners, doesn’t disclose sales for its hearing aids. The company has been making the products for more than 100 years , and the business is based in Erlangen in southern Germany, home to some of Siemens’s largest production sites. The unit may fetch 2 billion euros to 3 billion euros in a sale, the people said. The engineering company will likely pursue a so-called dual-track process of seeking a buyer while simultaneously preparing an IPO for 2010, the people said. The company followed a similar strategy with its VDO automotive division, which it sold to Continental AG for 11.4 billion euros in 2007 after simultaneously holding sales talks and preparing an IPO. Past Deals KKR has done deals with Siemens in the past. The private- equity firm run by Henry Kravis and George Roberts bought Wincor Nixdorf AG, a maker of bank machines, in 1999 from Siemens, as well as seven engineering units for 1.69 billion euros, including Demag Cranes AG, in 2002. Sonova Chief Executive Officer Valentin Chapero said on Nov. 14 it “wouldn’t be surprising” if Siemens sold its hearing-aid unit because it’s not “well adapted” to the rest of the German company’s business. The Swiss company has gained 87 percent so far this year, valuing Sonova at 7.77 billion Swiss francs ($7.74 billion). William Demant has a market value of 21.3 billion Danish kroner ($4.3 billion) after doubling in value in the last year. Other competitors include closely held Kind Hoergeraete, based in Hanover, Germany, and Fielmann AG , the German eyeframe manufacturer, which is branching out into hearing aids as an ageing population and ear damage caused by loud music increase the number of people with hearing disabilities. Hermann Requardt , the chief executive officer of Siemens’s health-care division, said on Sept. 29 at a meeting with analysts and investors that the hearing aids are “a very solid business and a strong contributor.” To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net

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Siemens Hearing Aids Unit Said to Attract Interest From KKR, BC Partners

November 26, 2009

By Aaron Kirchfeld Nov. 26 (Bloomberg) — Siemens AG’s hearing aid business, valued at as much as 3 billion euros ($4.5 billion), is drawing interest from private-equity firms including KKR & Co. L.P. and BC Partners Ltd., two people familiar with the matter said. Several financial investors have contacted the Munich-based company about buying the unit, said the people, who requested anonymity because the process isn’t public. Siemens has been in contact with investment banks about options, and hasn’t decided whether to sell the unit or conduct an initial public offering, though an exit from the business is likely, the people said. Siemens claims the No. 1 position in the global hearing aid market by units manufactured. It trails Sonova Holding AG of Switzerland and William Demant Holding A/S of Denmark by market share, according to Sonova. Siemens, Europe’s largest engineering company, is weighing a retreat from the industry to sharpen its focus on energy, transport and infrastructure, as well as on medical diagnostics tools, the people said. In addition to private-equity firms, makers of medical equipment may also be interested, the people said. Antitrust hurdles would bar Sonova and William Demant from a takeover, the people said. Siemens spokesman Constantin Birnstiel declined to comment, as did spokespeople for KKR and BC Partners in Germany. High Margins “Siemens hearing aids is attractive because the sector has relatively high margins and the business could be further improved by a new owner,” said Daniel Jelovcan , a Zurich-based health-care products analyst at Helvea AG. He estimates the unit could be valued at 2.5 billion euros to 3 billion euros, based on estimated sales of 680 million euros and peer valuation. Siemens, which also makes high-speed trains, power grids and medical scanners, doesn’t disclose sales for its hearing aids. The company has been making the products for more than 100 years , and the business is based in Erlangen in southern Germany, home to some of Siemens’s largest production sites. The unit may fetch 2 billion euros to 3 billion euros in a sale, the people said. The engineering company will likely pursue a so-called dual-track process of seeking a buyer while simultaneously preparing an IPO for 2010, the people said. The company followed a similar strategy with its VDO automotive division, which it sold to Continental AG for 11.4 billion euros in 2007 after simultaneously holding sales talks and preparing an IPO. KKR has done deals with Siemens in the past. The private- equity firm run by Henry Kravis and George Roberts bought Wincor Nixdorf AG, a maker of bank machines, in 1999 from Siemens, as well as seven engineering units for 1.69 billion euros, including Demag Cranes AG, in 2002. Sonova Chief Executive Officer Valentin Chapero said on Nov. 14 it “wouldn’t be surprising” if Siemens sold its hearing-aid unit because it’s not “well adapted” to the rest of the German company’s business. The Swiss company has gained 87 percent so far this year, valuing Sonova at 7.77 billion Swiss francs ($7.74 billion). To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net

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Flowers Says Suit Filed Over Forced Stake Sales by Hypo Minority Investors

October 11, 2009

By Aaron Kirchfeld Oct. 11 (Bloomberg) — U.S. investment firm J.C. Flowers & Co. said funds it advises filed a suit in Munich seeking to block Germany’s Soffin bank-rescue fund from forcing minority investors to sell their stake in Hypo Real Estate Holding AG . The suit, filed on Oct. 8, alleges the squeeze-out violates laws protecting the right of ownership, Flowers said in an e- mailed statement today. Hypo Real Estate spokesman Walter Allwicher declined to comment and Soffin couldn’t be immediately reached. The funds advised by Flowers own less than 3 percent of Hypo shares, a spokesman for the J.C. Flowers said today from Dusseldorf. Hypo Real Estate shareholders on Oct. 5 approved a plan by Soffin to force minority investors to sell their stock and give the government-owned fund full ownership. J.C Flowers, led by U.S. investor J. Christopher Flowers , said in April it would consider legal recourse to avoid a forced sale. The German commercial-property lender received 102 billion euros ($150 billion) in credit lines and debt guarantees from the German government and financial institutions to rescue it after the company’s Dublin-based Depfa Bank Plc unit failed to secure short-term funding during the global financial crisis. To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net

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Porsche Raided by Prosecutors Investigating Possible Market Manipulation

August 20, 2009

By Aaron Kirchfeld and Tony Czuczka Aug. 20 (Bloomberg) — Porsche SE , the German sports-car maker being bought by Volkswagen AG, was raided by German prosecutors in an investigation of possible violations of securities law and market manipulation. Officials this morning seized documents from the company’s Stuttgart office, Porsche said in an e-mailed statement today. The carmaker said it rejects the allegations and is fully cooperating and supporting authorities. German financial regulator BaFin handed over a complaint to the prosecutor’s office after findings from a probe into Porsche’s attempt to gain control of VW, BaFin spokeswoman Anja Engelland said in a telephone interview. BaFin separately is examining movement’s in VW stocks in “recent days” for signs of possible insider trading and market manipulation, she said. Prosecutors are investigating former managers of Porsche, Die Welt reported earlier today, adding that an unidentified spokeswoman for the prosecutor’s office confirmed an investigation of possible market manipulation and insider trading. The probe follows findings by BaFin, and among the targets is ex-Chief Executive Officer Wendelin Wiedeking and former Chief Financial Officer Holger Haerter , the newspaper reported. Wiedeking and Haerter “have declared full readiness to cooperate” with prosecutors, Porsche spokesman Frank Gaube said in an interview today. The Stuttgart-based prosecutor’s office couldn’t be immediately reached for comment. To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net ; Tony Czuczka in Berlin at aczuczka@bloomberg.net

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Merckle’s Phoenix Said to Weigh IPO, Sale Valuing Company at $8.5 Billion

August 18, 2009

By Aaron Kirchfeld and Ambereen Choudhury Aug. 19 (Bloomberg) — Phoenix Group , the German drug wholesaler started by the late billionaire Adolf Merckle , is considering an initial public offering as well as a sale, two people familiar with the plans said. Deutsche Bank AG , which is overseeing the sale, is weighing a dual-track process, where a bank simultaneously prepares a company for an IPO and lines up potential bidders, said the people, who declined to be identified because the talks are private. Phoenix, based in Mannheim, Germany, may be valued at about 5.5 billion euros to 6 billion euros ($8.5 billion), and an IPO would take place next year at the earliest, the people said. “It makes sense to test both options — a sale and IPO — to see which one fetches the most money,” said Ulrich Huwald , an analyst at M.M. Warburg in Hamburg. “There’ll probably be a number of interested strategic and private equity buyers.” The MSCI World Index’s 51 percent gain from its 15-year low in March is making share sales more attractive for companies after a two-year lull. Ludwig Merckle is selling drug, machinery and cement assets after his father Adolf, who committed suicide in January, amassed debt and lost money on wrong-way bets on the stock market last year. A final decision on a sale or IPO hasn’t been made so far, the people said. Vivien Kremer , a spokeswoman for the Merckles’ holding company, declined to comment, as did Deutsche Bank spokesman Armin Niedermeier . Mepha Group The Merckle family is also preparing to sell Mepha Group, a Swiss generic-drug maker, in an auction that could raise about 500 million Swiss francs ($464 million), people familiar with the situation said yesterday. Phoenix operates in 23 countries and supplies about 43,000 European pharmacies with medicines. The company had sales of 21.6 billion euros in the year ended Jan. 31, 2008, about 30 percent of which were in Germany, according to its latest annual report . The Merckle family also controls generic-drug maker Ratiopharm, which is also being sold. Alliance Boots Holdings Ltd., the U.K. drugstore chain controlled by Kohlberg Kravis Roberts & Co. , is considering a bid for Phoenix, four people familiar with the plan said in March. Nottingham, England-based Boots has made no final decision, the people said at the time. To contact the reporters on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net ; Ambereen Choudhury in London at achoudhury@bloomberg.net

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Commerzbank Posts $1.1 Billion Loss on Higher Loan Provisions, Writedowns

August 6, 2009

By Jann Bettinga and Aaron Kirchfeld Aug. 6 (Bloomberg) — Commerzbank AG , Germany’s second- biggest bank, posted a fourth consecutive quarterly loss after setting aside more money for bad loans and debt-related writedowns. The second-quarter net loss was 746 million euros ($1.07 billion), compared with a profit of 817 million euros a year earlier, the Frankfurt-based company said in a statement today. The median estimate of 12 analysts surveyed by Bloomberg was for a loss of 648 million euros. Chief Executive Officer Martin Blessing had to seek 18.2 billion euros in capital from the German government to carry the bank through the financial crisis and the country’s worst recession since World War II. The January takeover of Dresdner Bank saddled the company with billions of euros in toxic assets. “The recession is hitting Commerzbank very hard,” said Konrad Becker , an analyst at Merck Finck & Co. in Munich who recommends selling the stock. “If there’s someone who’s suffering because of loan-loss provisions, then it’s Commerzbank,” he said before today’s announcement. Commerzbank fell 11 percent since the start of 2009 in Frankfurt electronic trading, making the stock the fourth-worst performer in the 63-member Bloomberg Europe Banks and Financial Services Index during the period. Risky Assets “2009 will remain a challenging year, but we are heading in the right direction,” Blessing said in a statement. “Our total lending to Germany-based companies stands at a record level of 134 billion euros. Due to the general economic environment we expect the demand for loans to decline in the second half of the year.” Commerzbank set aside 993 million euros for doubtful loans in the second quarter, up from 414 million euros a year earlier. Analysts had estimated provisions of 960 million euros. Corporate bankruptcies in Germany rose 7.1 percent in April from a year before, the country’s Federal Statistics Office said last month. Frankfurt-based Deutsche Bank, Germany’s biggest bank, reported on July 28 a seven-fold increase in provisions for bad loans in the second quarter, more than analysts estimated. CEO Josef Ackermann said two days later that rising delinquencies among consumer and corporate borrowers will be the “next wave” of the financial crisis. Forecast Not Possible Commerzbank said it’s still not possible to make a forecast for 2009 “due to the ongoing difficult markets.” The lender stuck to a target to start paying back state aid as early as 2011, provided the “market develops positively.” Commerzbank said in May it would place 38 billion euros of risky assets such as mortgage-backed securities and collateralized debt obligations into a so-called portfolio restructuring unit to prepare for their sale. Dresdner Bank, which posted a record loss of 6.3 billion euros for 2008, had toxic assets with a market value of almost 40 billion euros at the end of last year, according to Commerzbank’s 2008 annual report . The world’s largest financial-services companies have racked up more than $1.5 trillion of losses and writedowns on credit-related assets in the global financial crisis, according to data compiled by Bloomberg. Commerzbank is scaling back Dresdner Bank’s investment- banking operations. It also sold the bank’s wealth-management business in Switzerland and private lender Reuschel & Co. as part of a plan to shrink the balance sheet. The European Union in May ordered Commerzbank to sell commercial-property lender Eurohypo in return for approving state aid. To contact the reporter on this story: Jann Bettinga in Frankfurt at jbettinga@bloomberg.net .

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Deutsche Bank Says Dalinc Ariburnu of Global Markets Unit Decides to Leave

July 30, 2009

By Jacqueline Simmons and Aaron Kirchfeld July 30 (Bloomberg) — Deutsche Bank AG said Dalinc Ariburnu , global head of emerging markets at the securities unit, has left after a decade at the Frankfurt-based company. Ariburnu, 39, will join Goldman Sachs Group Inc. as a partner and head of fixed-income and currency sales in Europe, the Middle East and Africa, said two people familiar with the matter, who declined to be identified before an announcement.

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Deutsche Bank Profit Rises 68%; Shares Drop as Loan-Loss Provisions Surge

July 28, 2009

By Aaron Kirchfeld and Jann Bettinga July 28 (Bloomberg) — Deutsche Bank AG , Germany’s biggest bank, said second-quarter profit rose 68 percent as increased revenue from trading bonds and stocks offset a surge in loan- loss provisions. Net income rose to 1.09 billion euros ($1.55 billion), or 1.64 euros a share, from 649 million euros, or 1.27 euros, a year earlier, the Frankfurt-based bank said in a statement today. Earnings exceeded the 944 million-euro median estimate of 13 analysts surveyed by Bloomberg

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Deutsche Bank Profit Rises 68%; Shares Drop as Loan-Loss Provisions Surge

July 28, 2009

By Aaron Kirchfeld and Jann Bettinga July 28 (Bloomberg) — Deutsche Bank AG , Germany’s biggest bank, said second-quarter profit rose 68 percent as increased revenue from trading bonds and stocks offset a surge in loan- loss provisions. Net income rose to 1.09 billion euros ($1.55 billion), or 1.64 euros a share, from 649 million euros, or 1.27 euros, a year earlier, the Frankfurt-based bank said in a statement today. Earnings exceeded the 944 million-euro median estimate of 13 analysts surveyed by Bloomberg

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