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Breuer: 'bank deals ahead'
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January 29, 2001: 1:18 p.m. ET
Deutsche Bank boss predicts surge in European mergers
Rod Cant CNN.com Europe business writer
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DAVOS, Switzerland (CNNfn) - Europe's most powerful banker told CNN there would be a spate of cross-border deals this year, in the run-up to the introduction of euro notes and coins.
Rolf Breuer, chief executive of Deutsche Bank (FDBK), Europe's largest, spoke with CNN at the World Economic Forum in Davos, Switzerland, and said banks have to get bigger.
"We're building a huge capital market, second only to the US," said Breuer. "The majority of present market participants are not big enough or skilled enough to be active throughout the market," continued Breuer. 
"We'll see a lot of all kinds of deals," according to Breuer, ranging from distribution agreements to full-blown mergers. He didn't say whether Deutsche Would be involved in the consolidation process.
He admitted his failed attempt last year to kick start the interrupted process of consolidation among German banks was unlikely to be revived in 2001. Deutsche agreed to merge with rival Dresdner, but the two prospective partners soon fell out over the fate of Dresdner's investment banking division.
"There won't be much doing this year, domestically," he told CNN.
For Deutsche the looming event on the horizon is the announcement next week of a radical restructuring of the bank's operations. Breuer refused to divulge too many details, but did say the bank would be cleaved in two, with one arm focusing on corporate customers and the other on individual clients.
He said the bank would retain a retail presence on German streets, but the number of branches would be much reduced from the current 1,200 level, and would be supported by a significant online presence.
Breuer left little doubt that the bank's historic 12 percent holding in DaimlerChrysler (FDCX) would be sold at the best available opportunity, an event facilitated by imminent changes to German tax laws.
However, he pointed out the difficulty in placing such a large stake, especially at such a currently depressed level. The carmaker said on Monday it would lay off 26,000 workers at its ailing US unit Chrysler. The shares have been bouncing around near four-year lows. 
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