BBC News | BUSINESS | Mannesmann to launch bank

BBC News Online: Business

Friday, 28 January, 2000, 17:42 GMT

Mannesmann to launch bank

Germany's Mannesmann and Deutsche Bank are to launch an internet bank later this year.

The bank will target Mannesmann's 35 million customers.

The 50/50 joint venture - called Tele-Commerce bank - will be separate from Deutsche Bank's internet business.

The move adds another string to Mannesmann's bow. The telecoms company is currently the subject of a hostile takeover bid by Vodafone AirTouch.

Earlier in the day, media speculation had centred on a tie-up between AOL Europe and Mannesmann, an alliance that would help the latter fight off Vodafone AirTouch's unwelcome overtures.

Analysts speculate that the 'mobile bank' may help convince Mannesmann shareholders to spurn the Vodafone bid.

So far, Vodafone AirTouch has dismissed the alliance as "nothing special".

Mobile banking, share dealing

The service will allow customers to access bank accounts either through fixed lines or wireless phones 24 hours a day.

It will also combine banking statements and telephone bills into one monthly statement.

The bank will open its virtual doors for business in the last quarter of this year. It will be expanded to include share dealing services by the first quarter of next year.

Mannesmann will provide the wires, switches, telephones and billing centres while Deutsche Bank will bring its expertise in financial products and banking regulations to the party.

So far, investor reaction has been muted.

Shares in Mannesmann dropped 0.3% to 268.20 euros, while Deutsche Bank was down 0.83% to 78.54 euros.

Related to this story:
Profile: Mannesmann - turning pipes into phones (21 Jan 00 | Business)
Mannesmann profits boosted by mobiles (07 Jan 00 | Business)
Mannesmann eyes AOL Europe (28 Jan 00 | Business)
The Telecom Revolution (21 Oct 99 | Business Basics)
World's biggest takeover bid (21 Dec 99 | Business)

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