GLOBAL - Deutsche Bank has entered into exclusive discussions with Boston-headquartered State Street Corporation over the possible sale of parts of its Global Securities Services business.
The business units up for debate include Deutsche’s global- custody, fund services, securities lending, performance measurement - including The WM Company and InterSec - and benefit payments businesses. US and UK custody and securities clearing units are also up for grabs. But domestic custody in Continental Europe, Asia and Latin America are excluded from the transaction.
Back in May, Deutsche was pondering a sell-off as part of an aggressive restructuring. At the time a spokesman for Deutsche said that the unit “lacked critical mass” .
The talks could bring months of speculation to a close, as to who will grab Deutsche’s market share. The Bank of New York and Mellon Corporation were also hotly tipped as contenders.
Discussions are expected to be finalised in the fourth quarter 2002.
Separately, Deutsche Bank also said that it is still reviewing the future of its E187bn passive asset management business. No further details were offered.
State Street Corporation already has US$6.2trn in assets under custody
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