Bankers Trust stockholders OK sale to Deutsche Bank

U.S. regulators only remaining hurdle

April 28, 1999|By BLOOMBERG NEWS

NEW YORK -- Bankers Trust Corp. shareholders approved the company's $10.1 billion sale to Deutsche Bank AG yesterday, removing a hurdle to creation of the world's biggest financial-services company.

The vote, at a special Bankers Trust shareholders' meeting, leaves approval by U.S. regulators as the last major barrier to the sale. The banks expect to complete the transaction by the end of the quarter, said Frank Newman, chairman of Bankers Trust.

Deutsche Bank will pay $93 a share for Bankers Trust. Bankers Trust shares rose 31.25 cents to $90.375. The shareholders' vote came after the close of trading.

Earlier this month, U.S. and local government officials and the World Jewish Congress said they will support the acquisition if Deutsche Bank contributes to a compensation fund for Holocaust victims. And the U.S. Justice Department has said the acquisition does not raise antitrust concerns because of Deutsche Bank's small U.S. presence.

Last week, the takeover won unconditional European Union approval. The EU said the merger of the second-biggest European bank and the eight-biggest U.S. bank would not threaten fair competition because Bankers Trust's European activities are too small to significantly boost the German bank's position in EU markets.

Newman said his pay package, which includes $14 million over the next three years plus guaranteed annual compensation of at least $11 million, was negotiated after the two banks agreed to merge.

"We negotiated the best that we could for our stockholders," Newman said.

Pub Date: 4/28/99

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