E*TRADE Group (ETFC)

[Joemoney]

E-Trade launches German e-broker, eyes takeovers

FRANKFURT, Nov 8 (Reuters) - U.S. online heavyweight E-Trade Group Inc. (NYSE:ET - news) said on Thursday it launched a German Internet broking unit despite weak market conditions and would examine takeover opportunities in its drive to join Europe's top ranks.

E-Trade said it aimed to become one of Germany's biggest e-brokers in two to three years by luring high-value investors with an attractive pricing plan. It also did not rule out buying market share under the right conditions.

``We have bought other firms worldwide in the past,'' E-Trade's chief executive for Germany, Torsten Zibell, told Reuters in comments embargoed for early Thursday. ``We will examine whatever opportunities present themselves.''

Zibell said E-Trade (www.etrade.de) was not currently talking to existing German brokers about a tie-up. ``Today, there are no concrete plans,'' he said.

Leading U.S. online brokerage firms, including Charles Schwab (NYSE:SCH - news), have long been expected to enter the German market, either organically or through an acquisition, and use Europe's largest economy as a springboard for further expansion.

Germany is the leader in the European online broking market, with comdirect bank AG ranking first in market value, followed by DAB bank AG and Consors AG (quote from Yahoo! UK & Ireland: CSOG.F).

Zibell said France and Italy also were interesting markets for E-Trade, which already has operations in Britain, Sweden, Norway and Denmark.

Its decision to enter Germany's saturated market just when the economy is slowing may surprise rival German online brokers, who could feel increasingly under pressure to seek partnerships as revenues drop.

``The timing has been well-chosen. Markets have seen the floor and the readiness to invest is rising,'' Zibell said.

He said E-Trade, which has nearly four million customers and operations in 12 countries, would win clients on the strength of its technical platform and attractive price packages. The German unit aims to break even in two years.

It will kick off with direct brokerage services to wholesale and retail customers, with plans to offer other services such as credit cards later.

Zibell declined to reveal information on marketing or start-up budgets and costs. Nor would he say what profit or how many customers the company aimed to get.

http://biz.yahoo.com/rf/011107/l07420579_2.html