ZURICH, Switzerland (Reuters) - Credit Suisse Group (CSGKY) unveiled an Internet partnership deal with Microsoft (MSFT) Corp on Thursday as the U.S. company continues moves aimed at becoming the most popular Web destination in Europe.
Credit Suisse said it had concluded a strategic pan-European partnership with Microsoft in which the Swiss financial group's new investment service will feature on Microsoft's MSN Web portal.
More alliances are expected in coming weeks as Microsoft prepares the launch of the MoneyCentral personal finance channel on MSN in Europe, with Chief Executive Steve Ballmer currently in Switzerland as part of a European tour.
Microsoft is fighting with specialized European portals run by telecom companies and local language sites run by U.S.-based Yahoo Inc and AOL-Time (TWX) Warner.
MSN ranked only fifth in France and Germany this summer in terms of unique visitors, according to Media Metrix (JMXI) research.
In Britain, France and Germany, Credit Suisse's online investment service will be part of MSN's new MoneyCentral personal finance channel, to be launched in the next few weeks.
From 2001, the cooperation will extend to the financial and business service on the MSN portals in Spain, Italy and Switzerland. Both partners are working on joint online content projects, Credit Suisse Group said in a statement.
Credit Suisse, Switzerland's second-largest financial services group, targets Europe's 40 million high-net-worth individuals with its investment service.
The MSN MoneyCentral partnership provides a distribution channel for Credit Suisse's new European investment service and ensures Credit Suisse advertising via the MSN site.
MSN said the deal with Credit Suisse was its largest one signed in Europe to date and was part of its strategy to provide vertical Internet content services from its home portal site.
SWISS BANKS AIM FOR INTERNET DISTRIBUTION
CS expects the new service to be up and running within a few weeks, allowing customers to start trading shares and other investment products through a Global Investor Portfolio account.
Other products and services will be phased in throughout 2000 and 2001.
"The launch of the new MoneyCentral business in Europe and MSN's position as number one European and global Internet portal (based on Nielsen Net Ratings) were the two prime reasons for us to select Microsoft as our partner," Credit Suisse Group Chairman and Chief Executive Lukas Muehlemann said.
"This will make a significant contribution to reach our objectives in the European market," he added.
Credit Suisse Group spokeswoman Ruth Stadelmann Kohler called the deal "a marketing promotional operation," adding it was non-exclusive for both partners.
It fits neatly with CS's strategy in Europe.
CS's Financial Services division, headed by Thomas Wellauer, is pushing a pan-European strategy targeting affluent investors, using both online and on-site operations to sell products and services.
Apart from its Swiss online trading service "youtrade," CS recently launched a pan-European online service.
It aims to have a million customers using its online services in Europe in three to four years.
CS could also get some leverage from its acquisition of Donaldson (DLJ), Lufkin & Jenrette DLJ.N, the U.S. broker it is now acquiring, which has a majority stake in U.S. online broker DLJdirect (DIR).
CS rival UBS AG (UBS)'s is slightly different.
UBS said earlier this month it was revamping its European e-banking strategy. Unlike CS, it will aim only at the wealthiest clients.
UBS, which is acquiring U.S. broker PaineWebber Inc will detail its e-banking strategy at year-end.
MSN EXPECTS FINANCIAL SERVICES PARTNERS
"Credit Suisse will be one of several providers of financial services at MSN. There's investment and personal finance, which Credit Suisse is providing, but there will also be insurance and personal pensions. And then there's online banking," said Sharon Baylay, marketing head for MSN Europe.
She indicated there will be little overlap between different financial services.
Finance is one of the key building blocks in the expansion plans of MSN.
On Tuesday Microsoft unveiled the revamped portal, backing it up with a pledge to invest $1 billion in its biggest effort to topple its rivals.
Research from Media Metrix showed that MSN has
