Joint venture on target
mergernews
Frankfurt in business
ICCREA signs up for European bank
ICCREA in figures
new venture
lf the letter of intent signed in October was the bones of the agreement
between DG and Rabobank, the Business Integration process is now adding the
meat. At the kickoff November 12, a framework for integration was put in place
(see WNS 9/99). Although it's early
days, here's a brief update on progress.
NewSventure
1998
Every two weeks, the so-called BIM
meeting monitors progess and resolves
potential issues and bottlenecks. Partici-
pating in this meeting are Uwe Flach and
Ton Toebosch, supported by project office
managers Stephan Rey and Bruce Tozer.
In the run-up to the meeting, each team
leader front the various business modules
submits a progress report which is then
discussed during the BIM meeting. Usu-
ally, a representative of each module at-
tends the meeting to provide additional
kty «ppolnlment»
printcd matter
information on what is happening, how
the team is doing and what progress has
been achieved. Current wisdom sees the
process to what is being called "One
Company' as taking at least nine ntonths
into the new year. Year end and early Jan-
uary have been slated as deadlines for a
number of key processes, including the
cultural side of developing a new organi-
zation.
From the verv beginning, communication
has been seen as key to moving the
process forward. This concept has already
been translated into concrete results
through the electronic medium newSven-
ture. Launched on 15 December, it will
keep you and counterparts in DG up to
date on developments. Check it out and
watch for regular updates and news items
similar to the NewS Flashes we're used to
for hot issues. Although communication
on the joint venture will be handled pri-
marily through newSventure, What's
NewS will continue to cover items of in
terest, especially when they relate to Rl.
For those of you wondering what's happening at Rl
in Frankfurt, general manager Manfred Schneider
reports that everyone on the Solmsstrasse is hard at
work but expectant. '1 suppose the best way to de-
scribe it is "no news",' he says. 'Obviously, there is a
lot going on at very senior and at business integration
levels between the two parent organizations. But for
the team here in Frankfurt, it is very much a question of getting
on with the job. We have deals in the pipeline and targets to
achieve. So even though we are all more than aware
that the joint venture process is being pursued, we're
doing our best to keep the people motivated.' There
has always been some friendly rivalry between DG
Bank and Rl in Frankfurt, as there is with all players
in this overbanked market. And that remains. But
here again, Schneider says that psychologically, peo
ple are acting as if DG will soon be 'family'. 'I rhink
we're looking at each other in a different way,' he
says. 'But let me stress that it's business as usual here and for the
time being at least, DG Bank is still the competition.'
When the joint venture between DG
and Rabobank was announced
back in October, both chairmen, Hans
Smits and Bernd Thiemann, stressed they
would welcome new joiners. The open
door policy for cooperative and other
like-minded financial institutions is al
ready hearing fruit. On December 1 I, the
Italian cooperative ICCRKA signed a
memorandum of understanding with the
two current players. This new develop-
ment will have no effect on the DG-R1
joint venture. Rather, a letter of intent will
be formulated over the coming months
covering other activities between the three
partners. Says Ton Toebosch, 'This is very
welcome news as this kind of develop-
ment reinforces our strategie framework
at European level. However, there will be
Balance sheet total
Operating profit
Capital adequacy
Staff
11,774.3(10.685.8)*
41.8(26.1)*
!.7 (9.9)
769(751)
*in ITL billion EUR 1 ITL 1936.27)
no operational consequences whatsoever
for our joint venture. It is certainly
possible that we will service Italian clients,
but our cooperative colleagues in Italy
will not participate in building the JV.'
ICCREA will be working with various
other entities in both the DG and
Rabobank Groups. The Robeco Group
will provide asset management and
DG BANK financial product support
for ICCREA Holding. ICCREA is the
central banking institution serving over
500 Italian cooperative credit banks
(CCB) which have a network of more
than 2,800 branches and four million
customers nationwide.
