Deutsche Bank snubs as Porsche taps into Wall Street to lead IPO

The country’s largest bank, Deutsche Bank, is missing from the IPO of the legendary sports car manufacturer Porsche, which is on the verge of one of the largest IPOs in Germany of all time.

Olkswagen selected an all-American cast that snubbed European banks to lead the proposed share sale, which could value Porsche at up to €90 billion, according to people familiar with the matter.

The election of Goldman Sachs, Bank of America, JPMorgan and Citigroup as joint global coordinators is another reminder of just how strong Wall Street’s hold on European equity markets has become. US banks have occupied the top five underwriting spots for equity issues across Europe, the Middle East and Africa over the past two years, according to data compiled by Bloomberg.

In particular, VW’s decision to ditch Deutsche Bank, which has long been a mainstay in the boardrooms of German blue-chip companies, surprised both the consultants who won the coveted top-line mandates and those who struck and missed, people said, asking not to identify to discuss private matters.

Deutsche Bank has made a big push for a starring role. Its CEO Christian Sewing, who is credited with stabilizing the German lender in recent years, has engaged with VW with a pre-recorded video message, sources said.

Other CEOs, including JPMorgan’s Jamie Dimon and Goldman’s David Solomon, also filmed messages to go along with their company’s presentations.

Goldman’s pitch included a video montage of bank employees gushing about how much they love their Porsches.

While Frankfurt-based Deutsche Bank is likely to snag a joint bookrunner role, that may be little consolation.

Given the ailing market for European IPOs, it will have been particularly desirable to lead such a large listing and secure a larger share of the fee pool.

Several American firms pursuing the deal were convinced that a listing of such a well-known German brand could never happen without a local bank = and Deutsche Bank, even after drastic restructuring, remains the only domestic global player in Europe’s largest economy.

Deutsche Bank may have thought so too. The supervisory board members include former VW board member Frank Witter and Sigmar Gabriel, former prime minister of the state of Lower Saxony, the carmaker’s second-largest shareholder.

Porsche’s IPO could be Germany’s biggest ever. Deutsche Bank snubs as Porsche taps into Wall Street to lead IPO

Fry Electronics Team

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