Dresdner 'set for US buy'

Dresdner is vying for profit in an increasingly competitive German market

Germany's third largest bank is in talks to buy US investment bank Wasserstein Perella, according to a report on Tuesday.

It could pay as much as $1.5bn for the US bank, a deal which would allow it to bolster its presence in the US mergers and acquisitions market, a report in the Wall Street Journal said.

Wasserstein Perella is a specialist US bank which advises companies on mergers and acquisitions. It was ranked fifth in the United States as a merger advisor.

The move is the latest attempt by Dresdner Bank to build its business, following the earlier collapse of merger talks with Deutsche Bank and then Commerzbank.

Dresdner is the latest European bank to look across the Atlantic for opportunities to boost their revenues.

US adventures

Last month, Credit Suisse First Boston announced plans to buy Donaldson, Lufkin and Jenrette for $13.7bn.

In July, UBS said it would buy PaineWebber for $10.9bn.

Dresdner is operating in an increasingly competitive German market, where it has seen its profits fall.

Earlier this year, the bank announced that it was to cut 5,000 jobs in the next two to three years.

The job cuts were seen by some analysts as the only way Dresdner can remain competitive on its own.

Dresdner already has a strong position in the European merger and acquisition market through its ownership of Kleinwort Benson, the UK merchant bank.