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May 15, 2015, 2:42 PM
- Any talks between Charter Communications (NASDAQ:CHTR) and Time Warner Cable (NYSE:TWC) about a merger may be up in the air, but bankers won't be the bottleneck, as they're ready to talk about $25B or even more to make it happen.
- Following previous reports that Charter could go for $25B-$30B in debt, the cableco is talking with the same four bankers that committed $24B to Charter's early-2014 bid: Bank of America Merrill Lynch (NYSE:BAC), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB) and Goldman Sachs (NYSE:GS).
- As one banker noted, "it should be quick to move to next steps, as the banks know the company pretty well," and said the package should end up as two-thirds bonds.
- Aside from any regulatory issues, leverage seems to be foremost on the mind of dealmakers (and investors). Liberty Broadband's (NASDAQ:LBRDA) Greg Maffei has gone public with the notion that Liberty could raise capital through rights offerings or tap $700M in cash to help with funding while maintaining its 25% stake in Charter.
- Other banks could join in too, which could make such a deal one of the largest junk bonds ever. Time Warner's on the edge of junk status, rated BBB/Baa2 by S&P and Moody's.
May 11, 2015, 1:18 PM
- Formerly president of the Clearing House Association, Paul Saltzman will join Deutsche Bank (NYSE:DB) as vice chairman and executive sponsor of the Comprehensive Capital Analysis and Review process, reports the WSJ. The Fed in March rejected Deutsche's capital plan, citing "numerous and significant deficiencies" in the way the bank's U.S. unit identifies risks, projects losses, and imposes internal controls.
- Saltzman will oversee Deutsche's CCAR efforts globally and report to Jacques Brand, CEO of the lender's U.S. operation.
May 1, 2015, 9:54 PM
- With plans (but not detailed plans, yet) to go public, Spanish-language broadcaster Univision swung to a $139.7M net loss in Q1, from a year-ago profit of $6.2M.
- The company hired Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS) and Deutsche Bank (NYSE:DB) to lead an IPO that it hopes will raise $1B, which would value the broadcaster around $20B.
- Revenues were up 0.6% to $624.7M. Univision blamed its loss on termination fees that it owed to the private-equity owners of its parent, Univision Communications, as well as to Grupo Televisa (NYSE:TV).
- Televisa used convertible debt to build a 38% stake in Univision and has the right to take that to 40%, so it is set to draw a payoff from Univision's eventual offering. It also drew a record $314M rebroadcasting royalty from Univision in 2014.
Apr. 27, 2015, 7:28 AM
- "The first plan didn’t turn out how you had hoped," says an analyst. “The management team is pretty much unchanged. Why should we believe this team will deliver this time around when it didn’t first time around?” Dropped today is the bank's hope for 12% ROE in 2016. Now, 10% is the goal in the medium term (it was 3.9% in Q1).
- Co-CEO Anshu Jain, speaking on a conference call, naturally disagrees with the assessment, tough notably missing from today's plan were details of how it will get to cost savings of €3.5B. “How are you going to make sure that these targets that you set today will actually be achieved," asks another analyst. "Five years is a long time to achieve those.”
- Source: Bloomberg
- DB is down 4.1% in premarket action.
- Previously: Deutsche Bank announces strategic overhaul (April 27)
Apr. 27, 2015, 3:53 AM
- Outlining its "next phase of strategy," Deutsche Bank (NYSE:DB) announced its much-anticipated strategic overhaul this morning, designed to close the gap with rivals for profitability and capital adequacy.
- The German lender said it would target €3.5B in annual savings by scaling back its investment bank and retail operations, floating a majority stake in Postbank and increasing automation. Deutsche also lowered its targeted ROE to at least 10% from 12%.
- Yesterday, the bank said legal costs halved its first-quarter net profit to around €559M.
- Previously: Deutsche Bank profit plunges on legal costs (Apr. 26 2015)
Apr. 26, 2015, 11:10 AM
- Deutsche Bank (NYSE:DB) reported first-quarter net profit that plunged to €559M from €1.1B a year earlier as hefty litigation charges outweighed a near record of €10.4B (+24% Y/Y) in revenue.
- Last week's $2.5B legal settlement for Libor rigging bit into the group's bottom line and totally depleted the €1.5B it set aside in legal reserves.
- Deutsche also said co-chief executives Anshu Jain and Jurgen Fitschen, as well as strategy chief Stefan Krause, will present details of its long-awaited overhaul on Monday morning.
Apr. 24, 2015, 6:22 AM
- Deutsche Bank's (NYSE:DB) supervisory board gathered today to review a sweeping restructuring plan to cut back investment banking operations and scrap the Postbank chain to restore profitability.
- Another proposal calls for Deutsche to exit retail banking entirely, selling both Postbank and its own-branded retail chain to become a pure investment and commercial bank.
- The decision, which may be announced as early as Friday evening, follows yesterday's $2.5B fine for the bank's alleged benchmark interest rate rigging.
- Previously: Deutsche Bank reportedly receives offer for China bank stake (Apr. 23 2015)
Apr. 23, 2015, 12:20 PM
- About the deliver restructuring plans which will include sizable cuts in its investment bank and the sale of businesses, Deutsche Bank (DB +0.1%) has received at least one offer from a Chinese firm for its 20% stake in Hua Xia Bank, reports Reuters.
- The value of Detusche's stake is nearly $5B, according to Reuters, though a final decision on divestment has yet to be made. Deutsche first bought a piece of Hua Xia in 2006, and later boosted its holding to 19.99% - the max allowed under Chinese rules.
- Previously: FT: Deutsche decides against total exit from retail banking (April 23)
Apr. 23, 2015, 8:56 AM
- In addition to the fine, Deutsche Bank (NYSE:DB) will fire seven employees to settle U.S. and U.K. investigations into the bank's role in rigging Libor.
- It's the largest penalty so far in the interest rate rigging probes, and comes on top of another €7.1B the bank has paid over the past three years to settle other investigations. There's more to come as regulators look into forex and MBS dealings.
- Source: Bloomberg
- Previously: FT: Deutsche decides against total exit from retail banking (April 23)
Apr. 23, 2015, 8:39 AM
- Rather than seeking to become a "European Goldman Sachs," Deutsche Bank's (NYSE:DB) top brass sees the business model as something closer to JPMorgan, reports the FT, which says the option of the bank splitting itself in two -with retail operations as one company and investment banking, wealth management, and global banking as another - will not be the way forward.
- Instead, Deutsche will sell Postbank - the German retail operation - and cut about €150B of assets from the investment bank unit. Deutsche will continue to operate its own-brand retail business.
- The recommendation is set to go forward to the board at a meeting tomorrow.
Apr. 22, 2015, 1:11 PM
- One week ahead of its earnings report, Deutsche Bank (DB +1.5%) says it expects to be profitable in Q1 despite non-tax-deductible litigation costs of about €1.5B.
- The bank earned €441M in Q4 and more than €1B on Q1 of 2014.
- The stock was already in the green on the session, but has added a bit more to gains since the news hit.
Apr. 22, 2015, 8:00 AM
- Deutsche Bank (NYSE:DB) could announce a major restructuring as early as this week, and it's apparently going to include a sale of Postbank, its German retail operation.
- "Employees of Postbank and its subsidiaries have been worried about their professional future for quite some time now," says the premier of Lower Saxony. "I urgently appeal to those in management and the supervisory board of Deutsche Bank to take no decision that would permanently endanger jobs in individual locations."
- Previously: Deutsche reportedly decides to sell Postbank (April 17)
Apr. 17, 2015, 10:25 AM
- Rather than sell or spin off all of its retail operations as it unveils a major restructuring later this year, Detusche Bank (DB -3.1%) has decided to sell its Postbank unit, according to a report in Der Spiegel.
- Postbank is Deutsche's retail operation in Germany.
- "An alternative model that foresaw the complete separation of retail banking business appears not to have found sufficient support in the management board," says the magazine.
- Previously: Deutsche set to unveil restructuring plans (April 13)
Apr. 13, 2015, 2:50 PM
- The strategy is expected to be presented by management at an extraordinary meeting of the board on April 24, reports Handelsblatt. If the board's questions are answered, the strategy could be made public on April 29 alongside Q1 results.
- Management, however, remains divided on the what the new business model will be. An earlier report said Deutsche Bank's (DB -0.5%) retail operations would bear the brunt of the restructuring and are likely to be spun off.
- Source: Reuters
Apr. 9, 2015, 6:37 PM
- Deutsche Bank (NYSE:DB) is in talks to resolve a probe into the firm's role in a long-running Libor manipulation probe "as soon as this month," the NYT reports. Authorities - the list includes New York State's financial regulator, the DOJ, and U.K. regulators - are collectively expected to collect over $1.5B, thus making Deutsche's payout the largest of any other bank caught up in the probe.
- To satisfy the DOJ, a Deutsche subsidiary will reportedly plead guilty to fraud. The exact settlement figure is said to remain in flux.
- Deutsche is also contending with a forex manipulation probe. Several other banks are reportedly discussing settlements.
Apr. 6, 2015, 4:37 PM
- The Melboune-based infrastructure investor, Plenary Group has 34 public-private partnership projects valued at about $21B across Asia Pacific and the Americas. It was founded by former ABN Amro bankers in 2004, with Deutsche Bank (NYSE:DB) taking a 20% stake.
- According to Financial Review, the bank is in early stages of talks to exit that stake.
- Alongside its ownership, Deutsche has an agreement to provide financing for all of Plenary's PPP deals until 2018, and this reportedly would continue even if Deutsche sells out.
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