International Smart Money On Buyout for DKB Private Equity –

The acrimonious breakdown of the proposed merger between Deutsche Bank and Dresdner Bank was attributed largely to the question of what to do with Dresdner Kleinwort Benson. Dresdner has accused Deutsche over a breach of trust’ by threatening to close or dispose of most of DKB, described as the group’s “jewel.” Not surprisingly, even before the merger plans finally came off the rails, staff were leaving DKB in droves.

DKB Private Equity declined to comment directly on its plans for the future a refusal that could be interpreted as lending credence to talks of an imminent buyout.

As the dust settled, Lenny Fisher was appointed chief executive of investment banking at Dresdner, which will now form a separate management board to run the investment banking business. All decisions concerning the investment banking side will be made by the new management board, rather than the Vorstand. DKB’s corporate finance head Tim Shacklock, meanwhile, will take a seat on the Vorstand.

Although DKB Private Equity is sheltered under the investment banking umbrella within DKB, it is a separate legal entity and is therefore likely to be largely unaffected by the new arrangements. However, sources close to the private equity group confirm that it is discussing how it might fit into Deutsche and DKB going forward. Rumors that third-party clients are unhappy with the uncertainty raised by the broken deal carry some merit not least because a projected fund raising has been set back by the Deutsche/Dresdner fiasco. One affected party said, “We can’t just sit around for six months while Dresdner decides what to do with it.”