Deutsche Bank is expected to take a majority shareholding in Sal Oppenheim soon. It is widely believed that Deutsche Bank is only interested in the private bank’s wealth management business and not its investment banking.

Yesterday, Financial Times Deutschland reported that, after talks to sell the investment banking business to Mediobank, the Italian bank, failed, Sal Oppenheim is now in exclusive talks with Macquarie for this sale.

While Sal Oppenheim declined to comment on this issue, this publication has learned from a source familiar with the situation that the bank is indeed now exclusively talking to Macquarie.

This publication was told that the negotiations are going well, especially because Macquarie is interested in buying the entire investment banking business from Sal Oppenheim, while Mediobank was only interested in the advisory business and not the financial market business.

WealthBriefing has learned that, due to the fact that negotiations with Macquarie started later than those with Mediobanca, an agreement might not be reached by mid-October, as previously expected, but rather by the end of October.

This publication understands that Deutsche Bank is not interested in the private bank’s investment banking business, but only their wealth management business. However, there appears to be no condition saying that the investment banking business has to be sold off before Deutsche Bank will buy equity in the firm.

Macquarie, Australia’s biggest investment bank, could massively strengthen its position in Europe with this acquisition.

At the moment, one third of Sal Oppenheim’s shares have been pledged as securities for Deutsche Bank loans. These loans were used to pay off existing credit and raise the firm's capital. 

One of Europe’s oldest private banks, Sal Oppenheim suffered a net loss of €117 million in 2008.