German investment bank Deutsche Bank Thursday upped its stake in National Discount
Brokers Group Inc., purchasing another $136 million of the online broker’s shares.
The alliance is part of the parties’ previously
announced intention to create a global e-commerce and financial partnership.
Deutsche
Bankwill purchase up to a 19.3 percent stake in NDB, or 3 million shares at $45.31 a share directly from NDB. DB already
owned a 1.7 percent stake in NDB. This
purchase adds another 14.3 percent share, valued at almost $136 million. The
remaining 3.3 percent may be acquired through open market purchases.
The strategic alliance provides NDB with access to DB’s U.S. equity research
and initial public offering capabilities. DB gains access to NDB’s online
investor community. The partnership also allows
DB to take advantage of NDB’s technology platform with the aim of delivering
an international online brokerage capability.
The companies intend to jointly create and own online brokerage capabilities
outside of the United States.
The deal is expected to close by the end of June.