trending Market Intelligence /marketintelligence/en/news-insights/trending/8xXBobMr86ZLowGdV1vPug2 content esgSubNav
In This List

HarbourVest continues to pursue SVG; Germany lobbies for Deutsche Bank


Commercial Banking: June 22nd Edition


Commercial Banking Newsletter June Edition - 2022


Street Talk | Episode 96: Considering recession risks, prospects that the Fed achieves a 'soft landing'

Case Study

Actions to Reduce Emissions at an Asian Financial Services Firm

HarbourVest continues to pursue SVG; Germany lobbies for Deutsche Bank

S&P Global Market Intelligence offers our top picksof banking news stories and more published throughout the week.

Deutsche Bank makesheadlines for the wrong reasons

* DeutscheBank's negotiations with the U.S. Department of Justice overallegations that it missold RMBS are progressing, but have not yet reached a stage where aproposed settlement has been presented for approval to senior figures at eitherparty. The bank is said to be looking to reach a with U.S. authorities forbetween $4 billion and $5 billion by the end of October. The DOJ is seeking $14billion from Deutsche Bank to resolve the allegations.

* Germany is discreetly lobbying the U.S. in a bid to help the bank reach asettlement quickly. With general elections coming up in 2017, Germany is keento see the matter resolved.

* Meanwhile, some of Germany's top companies showed interestin providing capitalto Deutsche Bank, which is said to be also discussing various means to raisecapital with a number of Wall Street firms. The lender is reportedly alsoconsidering floating a minority stake in its asset management division.

* Also, the bank said it will cut another 1,000 jobs inGermany, in addition to the 3,000 layoffs already agreed in the first round ofnegotiations with employee representatives in June.

* In some good news for the lender, German financialregulator Bafin is thought to be unlikely to fine the bank over alleged money laundering breaches inRussia.

The SVG Capital/HarbourVestsaga

* in principle to sellits entire investment portfolio to funds managed by and certaininvestment entities managed by the Canada Pension Plan Investment Board forabout £747.8 million as it believes that the Goldman/CPPIB offer will generatebetter value compared to HarbourVestPartners LLC's offer.

* Separately, HarbourVest Partnerssaid it extended the acceptance period for its final cash offer for SVG Capitalto 1 p.m. London time on Oct. 13. As of the Oct. 6 prior closing date of theoffer, HarbourVest had received valid acceptances in respect of 43,246,700shares in SVG Capital, representing a 27.7% stake, of which 26.6% were subjectto an irrevocable undertaking and/or letter of intent.

* Meanwhile, andAviva Plc, which ownminority stakes in SVG Capital, withdrew their support of HarbourVest's offerfor SVG Capital

A merger of equalsand more in M&A

* HendersonGroup Plc and JanusCapital Group Inc. agreed to an all-stock to form Janus HendersonGlobal Investors Plc. Shareholders of Henderson and Janus are expected to ownabout 57% and 43%, respectively, of the combined group's shares upon closing ofthe deal, which is expected in the second quarter of 2017.

* AmundiSA reportedly offered€4 billion to acquire UniCreditSpA unit PioneerGlobal Asset Management SpA. The French insurer's higher-than-expectedoffer has pushed Poste ItalianeSpA to search for a financial partner to up its own bid for theasset management company. UniCredit said it will a buyer after the Dec. 4 on Italian Prime MinisterMatteo Renzi's constitutional reform.

* The management and supervisory boards of andunlisted parentRaiffeisen Zentralbank ÖsterreichAG passed in principle a resolution to merge RZB into RBI.

* , in charge ofmanaging the Bradford &Bingley Plc mortgage portfolios, has the planned asset sale program,which was put on hold to assess market volatility in the aftermath of theBrexit vote.

* Bank ofAmerica Corp. rejected attempts by several parties interested inMBNA Ltd. to getthemselves covered against future payment protection insurance liabilities.BofA reportedly also asked bidders, including andCerberus Capital ManagementLP, to submit revised offers for the U.K. credit card issuer in acouple of weeks.

* French telecommunications firm Orange SA completed theacquisition of a 65% stake in Groupama Banque SA from insurer . Orange plans torebrand GroupamaBanque as Orange Bank and use it as a platform to launch a mobile bank.

In other news

* ING GroepNV intends to invest €800 million in its digital transformationfrom 2016 to 2021, as part of restructuring plan Think Forward. CEO Ralph Hamers notedthat the program is expected to generate about €900 million of annual costsavings by 2021, although it may lead to some 7,000 jobs being lost, primarilyin the Netherlands and Belgium. ING is also looking to transform its unit into anomnichannel banking environment through a merger with .

* The Swedish FSA a common equity Tier 1 ratiorequirement of 17.3% for NordeaBank AB (publ) as of Sept. 30, compared to a CET1 ratio and a proforma ratio, including synthetic securitization, of 16.8% and 17.2%,respectively, as of June 30. Svenska Handelsbanken AB (publ), meanwhile, said theFSA's assessed requirement for its CET1 capital corresponds to 21.1% at2016-end. Handelsbanken's CET1 ratio stood at 23.0% as of June 30.

Featured during the week on S&P Global Market Intelligence
* Merging Spain's Bankia withMare Nostrum may mean bigger not better: Spain is considering tomerge both banks, which may extend Banco Mare Nostrum's reach in the country,although no definite cost savings targets exist.

* : Fears of a "hard Brexit" have beenaggravated as a result of the U.K. governing Conservative Party distancingitself from the City of London.