Deutsche eyes NZ's Craigs Investment

Global giant Deutsche Bank is understood to be eyeing a slice of local share broking firm Craigs Investment Partners.

BusinessDay understands a restructure is underway at Craigs Investment Partners with Deutsche Bank tipped to take a stake of between 20 percent and 30 percent.

News of Deutsche Bank's interest comes less than a year after Craigs employees took 100 percent ownership of their firm, formerly known as ABN Amro Craigs, by buying a 50 percent stake from Royal Bank of Scotland.

That deal came as Royal Bank of Scotland exited its New Zealand business last April which had operated under the ABN Amro name.

Both Frank Aldridge, Craigs Investment Partners' managing director, and Brett Shepherd, Deutsche Bank's New Zealand chief executive of global banking, declined to comment.

Deutsche buying into Craigs could see some job losses with Deutsche tipped to take on Craigs' investment banking work. It may also mean changes to the ongoing relationship the kiwi firm has with Royal Bank of Scotland given potential for a new alliance with Deutsche.

Currently Craigs and Royal Bank of Scotland's Australian operations share and swap equity research, undertake share broking work for each other and strive to work together on trans-Tasman investment banking opportunities.

In New Zealand Deutsche Bank offers investment banking, asset management and private client advice services. However, it does not currently have any wholesale or retail operations here.

The Frankfurt-headquartered Deutsche Bank last week reported 2009 net profit of 5 billion euros (NZ$9.9b), reversing a 3.9b euros loss in 2008. Fourth quarter profit alone was 1.3b euros.

Deutsche Bank chairman Dr Josef Ackermann said the group had taken decisive strategic action in 2009 to overcome the global financial crisis and was well placed for both the challenges and opportunities of 2010.

Craigs Investment Partners was founded by Neil Craig as Craig & Co in 1984.