Now raising intellectual capital

For Sale: Investment Bank, one troubled owner


MEDIA-PROPS/So Deutsche Bank has written a large cheque to bail out Sal. Oppenheim — allowing the German private bank’s investors to subscribe to a 300 million euro share issue  which raises its equity capital to around 2.1 billion euros.

This is just part of the story though. The next step is apparently for Deutsche to take a stake in the 220-year-old private bank and for Sal. Oppenheim to sell off its investment banking business.

Sal. Oppenheim and Deutsche are giving little away — although the private bank says on its website that shareholders made the injection, which was financed by Deutsche and is the first step in a process of establishing a “strategic partnership” with the German lender.

A source tells Reuters that “interested parties” are already knocking on the door to buy Sal. Oppenheim’s investment banking business, which made a loss in 2008 — largely because of share trading losses.

from Margaret Doyle:

Deutsche deal shows Oppenheim weakness

How are the mighty fallen! Sal Oppenheim may be have been banker to Germany's elite for 220 years. However, a few rash investments over the past couple of them appear to have forced it into the hands of Deutsche Bank, the 800 pound gorilla of German banking. However, Oppenheim's clients may be less than delighted at the change of ownership.

The two admitted to being in talks enabling Deutsche to acquire a minority stake on Wednesday, though sources suggest that this could lead to a majority holding.