BusinessWeek headline: Deutsche Boerse Moves Jobs to Prague to Save Money.
Sorry, Frankfurt, but this is precisely the kind of silver lining CEE property people always hoped would follow the dark storm clouds of recession.
The Frankfurt-based company said 370 jobs will be affected, with about two-thirds shifted to the Czech Republic, according to a statement. The 100 million euros in cost cuts are in addition to 50 million euros in annual savings beginning in 2011 that Deutsche Boerse announced in February.
“We value the additional cost saving program clearly as positive news which enables Deutsche Boerse to grow earnings in the years to come,” DZ Bank AG analyst Matthias Duerr said in a note to clients today. “Together, with the 50 million euro cost savings announced in February 2010, total cost savings of 150 million euros will be realized in 2013.” He has a “buy” recommendation on the stock.
A bit surprised Warsaw didn’t get the nod, seeing as it tends to be seen as CEE’s future financial center. It just remains to see which office developer (or owner) wins the tug of war for the prestigious tenant.
