WORLD'S SUPER BANK

Press, Volume L, Issue 14985, 4 June 1914, Page 11

WORLD'S SUPER BANK

HUGE GERMAN AMALCxAMATIQN.

(trou our owv IAJSsiAjiS, April H-. • The fusion of tuts -acuaan-.-.u-.e-iscner Bank wiwi tne Discouu>_.__e__.cnai_ ua_ been announce-! on tne _>eran jetours-. It is yet ono more of mo greac amalgamations wiuca are becoming common in German nuance.' ine scnaailnausenscner retains its name and its. legal individuaiu,', _*?. becomes the property ot the Disconto, its shares, beipg exchanged lor a new issuo by the latter company at tne ratio of five to .three.* This'transaction will rai_e to .£±5,000,000 tho capital of tho Discont---l«sells-__--t > wrnch thus becomes tne biggest' bank, not only in but, it is claimed, in the entire world. It will also possess the largest capital of any company whatever in this country, taking the position previously held by tho Deutsche Bank, with its £12,500,000 of stock. • '

- Tho purchase by the Disconto was finally provoked by the recent purchase by the Deutsche Bank of a' smaller bank, which gave the Deutsche a very strong position in tho manufacturing districts of the Rhine arid Westphalia By the purchase of the Schaaffhausenscber the Disconto may now be considered to haye mop than countered this coup. The name of the premises of the, Schaaffhausenscher will be maintained. The .Disconto proposes to reconstruct the concern with a capital of £5,000,000, which means 40 per cant. reduction on the present capital. Tho Schaaffhausenscher. will operate in the north-west of Germany, and the Ins-conto-will take over the whole of th© Schaaffhausenscher premises and business in Berlin and elsewhere. The news of the transaction was well received oa the Bourse, and tho stock of bofn concerns advanced two points or ftiore. There is much curiosity to know whother tho Disconto is.now, really a more powerful undertaking than its ~greafc rival, the Deutsche Bank, the real value of which is far in advance of Its j registered <vm...... an d i s now estimated at £21,500.000.