Alex. Brown to sell unit

Talks begin on sale of small department

15 jobs to be affected

Investment banking

July 02, 1999|By Sean Somerville | Sean Somerville,SUN STAFF

Deutsche Banc Alex. Brown plans to sell its short-term municipal finance business, a move precipitated by the $9 billion merger last month that joined Bankers Trust and Germany's Deutsche Bank AG.

A spokeswoman for Deutsche Banc Alex. Brown said yesterday that the business did not fit well with the German company's other operations. "It's a relatively small business," said the spokeswoman, adding that the move would affect about 15 jobs -- mostly in New York.

The spokeswoman also said Deutsche Bank is in discussions to sell the business and no date has been set for shutting it down.

The move marks another change for the Baltimore investment banking company, which has seen an exodus of top executives and other professionals since Bankers Trust Corp. acquired it in September 1997.

Last month, the head of Deutsche Banc Alex. Brown's trading operations in Baltimore took early retirement, and two other top traders left for jobs at First Union Corp.

This week, Credit Suisse First Boston said it had lured four Alex. Brown managing directors for its expanding health investment group, including Russell T. Ray, who will head the unit. More people from Alex. Brown's 50-person health investment department reportedly may be lured to the Credit Suisse operation, which will be based in Baltimore.

Three Alex. Brown veterans were named yesterday to head the Baltimore company's global health care investment practice after the Credit Suisse raid. They are: Stanley B. Blaylock, Thomas J. DeRosa -- both from Baltimore -- and James P. Scopa.

Blaylock, who joined Alex. Brown in 1989, and DeRosa, who joined the company in 1992, are senior members of the company's health care team in Baltimore.

Scopa, who joined Alex. Brown in 1990, has a similar position in the company's San Francisco office.

Deutsche Banc Alex. Brown also named James M. Shapiro, a senior member of the company's West Coast health care banking group, to set up a venture capital business that focuses on health.

Josef Ackermann, the Deutsche Bank Group board member responsible for investment banking, said, "Deutsche Banc Alex Brown's health care investment banking practice is one of our firm's premier franchises."

With the new appointments, he said, "We have the leadership and strong teams in place to continue to build upon our solid foundation."

Pub Date: 7/02/99

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