Is the Citigroup acquisition of Deutsche Bank AG back on? Shares of Germany's biggest bank saw as much as six percent gain today (they're up 4.7% right now), and the rumor is everywhere. There were talks of an acquisition three years ago but they fell apart over fears of political fall-out.
Update: Bloomberg's on the story.
First the confirmation that the rumor is driving up the share price:
"We heard a rumor Citigroup might bid for Deutsche Bank,'' said Joerg Treptow, a trader at M.M. Warburg & Co. KGaA in Hamburg. "This is boosting the shares today.''
Next the analyst who is skeptical about the rumor.
"I place very little credibility on this speculation,'' said Jon Peace, an analyst at Fox-Pitt Kelton Ltd in London. Integrating the banks' investment-banking units would be "very costly," and Citigroup could expand consumer banking in Germany through other banks, he said.