That Deal Of The Century Never Mind

Walter’s move made sense; Dresdner’s a wounded bank, and even Chancellor Gerhard Schroder said that he had seen “more mature behavior by companies.” Less logical was the response of Deutsche chairman Rolf Breuer, who first called Dresdner’s investment banking unit “a jewel” but then decided to ditch it, prompting Walter to walk. “The failure of the deal is almost 100 percent Breuer’s fault,” says Mark Hoge, a banking analyst with DLJ in London. But in a press conference Breuer accepted no blame and said he had no intention of quitting.

What next? Dresdner may be bought by a foreign bank. Insurance giant Allianz– Dresdner’s major shareholder and a party to the aborted deal –is eager to sell. Profitable Deutsche may seek another deal, too. Meanwhile, it will keep telling clients it’s good at giving merger advice–a tougher sell than ever.