Deutsche Bank, GemanyÔÇÖs largest lender, is in talks to buy a stake in major European private bank Sal. Oppenheim, GermanyÔÇÖs largest independent wealth manager.
The bank is said to be considering a minority stake in Sal Oppenheim, which has been hit hard by the under-performance of its investments during the financial crisis.
In the event of a tie-up, the structure of the two banks would remain unchanged.
ÔÇ£Deutsche Bank has made a non-binding offer for a capital stake in Sal. Oppenheim,ÔÇØ Deutsche Bank confirmed in a statement.
ÔÇ£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.ÔÇØ
Luxembourg-based Sal. Oppenheim, which employs around 4,000 people, had around Ôé¼132 billion under management at the end of 2008. Two of its major investmentsÔÇöa stake in IKB Deutsche Industriebank and one in German department store ArcandorÔÇöwent sour during the financial downturn.
Frankfurt-based Deutsche Bank has been eager to expand further into private wealth management due to the relative stability of that area when compared with investment banking.
A timeline for the potential deal has not yet been confirmed.
Sal. Oppenheim is in its seventh generation of family ownership.
 
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