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5/13, 7:32 PM (Source: TeleTrader)
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Deutsche, UBS talks hit impasse over asset control - report

European banking giants UBS and Deutsche Bank's asset management merger negotiations hit an impasse over disagreement who would control the combined €1.4 trillion business, the Financial Times reported on Monday, citing sources with knowledge on the matter. The negotiations were on their way to create one of the largest Europe's asset management firms, equal to France's Amundi.

According to the report, the talks are still ongoing, but the biggest current disagreement is related to the valuation of the two asset managers. Although UBS' assets are larger at €733 billion, Deutsche Bank is only slightly lagging with €704 billion. Meanwhile, both firms still think the merger would result in long-term benefits for both of them.

The news comes shortly after Deutsche Bank canceled merger talks with its main German rival, Commerzbank, asserting the deal would not create sufficient benefits that would outweigh the risks involved.

Breaking the News / SS