There are
rumors that Citigroup Inc. may sell its German retail operations unit, Citibank Deutschland, within the next few months. Dealscape spoke with industry analyst
Richard Bove of Punk, Ziegel & Co. about the rumors and
possibility that Germany's Deutsche Bank AG may purchase the unit.
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"I wouldn't be surprised if they [Citigroup] sold the retail operations, but I would be surprised if they [Citigroup] pulled out of Germany completely," he said. "Deutsche Bank is the dominant bank in Germany, and it would be natural for them because they are constantly adding retail operations just as Bank of America is doing in the U.S."
Bove added that Citigroup had put a massive effort into building up its business in Germany, but it had not been producing the profits the bank had expected. "In the United States, banks pretty much hold onto everything, but Citigroup is unique in that they have been able to sell in the past. They have made some very substantial sales in the past, and the question right now is, 'What are they going to sell?' I would guess it would be retail oriented," he said.
Citigroup Inc. is not commenting on the
rumor that it may sell Citibank Deutschland within the next few months. -
Maria Woehr
