Deutsche Bank pulls out of race to bud for DHFL
German lender Deutsche Bank has pulled out of the race to bid for embattled mortgage lender Dewan Housing Finance citing clash of interests, two persons familiar with the development said.
The bank, which has been lapping up junk bonds of DHFL on behalf of its offshore clients, backed out due to conflict of interest as it may have these bond on its books, one of the persons cited above said.
This now leaves 23 suitors in fray who have expressed interest to buy DHFL.
“Deutsche Bank hasn’t submitted documents for it to get cleared under the ‘fit & proper’ rule, a prerequisite to gain eligibility to submit final bids, this is due to conflict of interest as the lender also has exposure to DHFL bonds,” said an official involved in the bid process.
Deutsche Bank declined to comment.