Deutsche Bank to get at least 3 BHF bids: sources

FRANKFURT (BestGrowthStock) – Deutsche Bank (DBKGn.DE: ) is likely to get at least three bids for its wealth management unit BHF, two people close to the matter said.

Private equity house Apollo (APOLO.UL: ) and Liechtenstein-based bank LGT (LGT.UL: ) will each submit a bid, the people told Reuters on Wednesday.

In addition, a consortium of Bankhaus Lampe and private equity company KKR (KKR.N: ) will make a joint offer, sources had said last week.

Bids for BHF are due in early November. The unit’s own management has expressed a clear preference for strategic bidders, making it difficult for financial investors to gain a foothold in an industry where hostile deals are not customary.

But Apollo sees no competitive disadvantage for itself as it has a long-term approach and may use BHF as a consolidation platform in the German banking market, one of the sources said.

Apollo and LGT declined to comment.

Deutsche Bank in recent weeks narrowed the field of bidders for BHF as it seeks to sell the company’s wealth management, asset management and corporate banking units as a whole.

Deutsche Bank has been on the lookout for a potential buyer ever since it inherited BHF through its 1 billion euro ($1.39 billion) purchase of Sal. Oppenheim in March.

Given the amount of restructuring needed, BHF is expected to fetch around half of its 650 million euro book value, people close to some of the bidders have said.

(Reporting by Alexander Huebner; writing by Arno Schuetze; Editing by Jon Loades-Carter)

Deutsche Bank to get at least 3 BHF bids: sources