* Bafin wants information on BHF deal by end-August -
* Source: Bafin 'doesn't want another problem case'
* Bafin says does not have information to evaluate case
By Alexander Hübner and Edward Taylor
FRANKFURT, Aug 16 German regulator Bafin has set
an end of August deadline for investors to submit information
needed to approve Deutsche Bank's sale of BHF to a
consortium headed by RHJ International (RHJI), two people
familiar with the process said.
The consortium originally agreed to buy the Frankfurt-based
lender from Deutsche Bank in March 2012, only to see Bafin
refuse to approve the deal, citing concerns about BHF's ability
to withstand a crisis on a standalone basis.
RHJI beefed up its offer in September 2012 by bringing in
more investors including China's Fosun Group, BMW
heir Stefan Quandt, and funds controlled by U.S.
investor Timothy C. Collins and Blackrock.
Bafin has been evaluating the consortium since.
One of the people familiar with the approval process said on
Friday that Bafin had asked asset manager Blackrock,
which is part of the consortium, to provide details about how
they would support BHF in a crisis.
A key concern is whether Blackrock would take part in a
capital increase in the event that further funds need to be
provided to support BHF, another person familiar with the matter
"The regulator doesn't want another problem case," the
RHJI, Blackrock and Deutsche Bank all declined to comment.
A Bafin spokesman declined to comment on whether there was
an ultimatum, but said: "We do not have all of the required
information. Therefore we cannot evaluate this case."
A successful sale would reduce Deutsche's risk-weighted
assets by about 2 billion euros ($2.65 billion), and result in
capital gains of around 75 million euros, analysts at Espirito
Santo Investment Bank said.
Deutsche Bank has been on the lookout for a buyer since it
inherited BHF with its 1 billion euro purchase of Sal. Oppenheim
in March 2010. Since then headcount at the lender, which has
wealth management, asset management and investment banking
operations, has been reduced to around 1,100 from 1,500 staff.
The regulator also scotched Deutsche Bank's initial plan to
sell BHF to LGT, a bank owned by the royal family of
the Alpine principality of Liechtenstein.