Deutsche plans no investment bank M&A

By Mathieu Robbins and Andrew Hurst

LONDON (Reuters) - Germany's biggest bank Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz) does not plan to buy an investment bank, chief executive Josef Ackermann said as speculation swirled that some may become takeover targets.

"In investment banking we are one of top three in revenues," Ackermann told the Reuters Finance Summit on Thursday. "I don't think it makes sense for us to buy another investment bank or merge. It would not add value for our shareholders."

The comment comes amid reports that U.S. rival Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) met rival bank Wachovia (WB.N: Quote, Profile, Research, Stock Buzz) to discuss a possible merger, and as other executives told the Reuters Summit that U.S. banks such as Merrill may become takeover targets amid falling share prices and the weak dollar.

He also said Deutsche was unlikely to make big acquisitions in wealth management and would concentrate on organic growth.

Deutsche is however seeking growth opportunities for its retail bank in new markets such as Romania and Turkey as it plans its growth, said Ackermann.

"We have created about a billion euros in value in our Chinese and Vietnamese transactions," Ackermann said on Thursday. "Would we add other markets? Absolutely. Turkey, Romania for example."

Ackermann emphasized such retail acquisitions depended on opportunities in those markets and added "these will not be big deals". He also said that in markets such as India acquisitions are possible.

Many European banks such as Unicredit (CRDI.MI: Quote, Profile, Research, Stock Buzz), Societe Generale (SOGN.PA: Quote, Profile, Research, Stock Buzz) and Banca Intesa (ISP.MI: Quote, Profile, Research, Stock Buzz) have looked eastwards for expansion opportunities as growth slows and acquisition opportunities dwindle in their mature home markets.  Continued...