Deutsche Bank has confirmed talks on a strategic partnership with Sal. Oppenheim (Oppenheim). In this respect, Deutsche Bank has made a non-binding offer for a capital stake in Sal. Oppenheim and the latter will allow Deutsche Bank to conduct due diligence.
Sal. Oppenheim ventured into several high-profile investments that backfired in the wake of financial turmoil, such as sub-prime victim IKB and Arcandor, the retail group that became Germany’s biggest post-war bankrupt company. It had recorded a $168.4 million net loss in 2008 – reported Reuters.
The partnership talk comes after the Luxembourg-based private bank did not acknowledge for some time that it may require additional capital to run its operations normally. Securing an investor may help Oppenheim, banker to neighbouring country Germany’s wealthy customers, prevent an exodus of client money akin to the one witnessed at Swiss banking major UBS, reported the newspaper.
The strategic partnership is intended to give Sal. Oppenheim’s customers access to Deutsche Bank’s global network and strengthen Deutsche Bank’s position in business with affluent private clients, especially in Germany.
