Stock Watch: Deutsche Bank Buyout Plan Lifts NDB

National Discount Brokers Group, Inc. (NYSE: NDB) rose 15/16 to 48 1/4 Thursday after the company, the parent of online brokerage NDB.com, said it agreed to Deutsche Bank AG’s $49 per-share buyout offer.

“By partnering with Deutsche Bank, NDB will be able to leverage the global expertise and financial strength of an industry leader,” said NDB president and chief executive officer Arthur Kontos. “Deutsche Bank has an unparalleled breadth of banking and equity markets experience, and we look forward to working together to capitalize on the opportunities ahead and to grow our businesses.”

The deal will put Deutsche Bank among the five largest Nasdaq market makers. The German company also has an online subsidiary, Brokerage 24, which will absorb the NDB.com operations.

The companies expect to complete the merger by the end of the year. The agreement is subject to both regulatory and shareholder approval. It must also be approved by Deutsche Bank’s supervisory board.

Two days ago, the company announced the pending offer from Deutsche Bank, and said it had also received overtures from several other suitors, which the company did not identify. Deutsche Bank already owns 16 percent of NDB’s outstanding common stock.

News that the deal was in the works drove shares of other online brokers higher Tuesday, but the issues ended lower Thursday amid a broad Nasdaq selloff. Knight Trading (Nasdaq: NITE) ended down 1 at 26 1/8, E*Trade Group Inc. (Nasdaq: EGRP) slipped 5/16 to 12 3/4, and Ameritrade (Nasdaq: AMTD) lost 1/16 to 13 7/16.

Leave a Comment

Please sign in to post or reply to a comment. New users create a free account.

Elon Musk's Dec. 2 action to release The Twitter Files: Approve or Disapprove?
Loading ... Loading ...

E-Commerce Times Channels