Русская версияGermany looks to be on the brink of a major shakeout in its
fragmented banking industry with expectations of an announcement
for a merger valued at around 8 billion euros ($12 billion) between
the nation's second and third-largest banks.
A series of newspapers have reported that talks between Commerzbank
and Dresdner Bank have entered a critical stage.
The reports
include outlines of a tie-up that would clear the way for the
biggest restructuring of the German banking system in more than
seven years.
"It must come to an end"
The
Financial Times Deutschland
reported that after months of talks the Commerzbank's bank board
is set to reach a decision on the merger by Friday, Aug. 29.
"It must now come to an end -- one way or the other," Germany's
weekly
Welt am Sonntag
quoted a company official close to the negotiations with the
newspaper as saying on Sunday, Aug. 24. He also said the two banks
had agreed to a structure for the transaction.
The deal, if it goes ahead, would create a group to rival German
flagship Deutsche Bank. It would also let Dresdner parent Allianz
escape the pair's unhappy marriage. Allianz, a Munich-based
insurer, bought Dresdner seven years ago in a failed bid to bring
together investment bankers and insurance salesmen. Instead, it
angered investors as losses spiraled.
Extraordinary board meeting is set
Commerzbank has been in talks about buying Dresdner since June, but
there had been few public signs of life in the negotiations in
recent weeks.
Now, however, Commerzbank is planning to call an extraordinary
meeting of its supervisory board in a signal that negotiations
between the two have reached a critical stage, Reuters news service
reported.
The 21-strong supervisory board is Commerzbank's governing body and
its approval is required for large deals such as a merger with
Dresdner.
Signing a deal by the end of August means Commerzbank can avoid the
complication of buying two banks instead of one. Allianz will
formally separate Dresdner's embattled investment bank from its
retail branch business at the start of September.
Dresdner Kleinwort could also face change
Earlier this month Allianz announced the company had been forced to
abandon its earnings forecast in the face of tough financial
markets.
While
Welt am Sonntag
said Allianz would hold a 30-percent stake in the new merged
Dresdner-Commerzbank group, analysts estimate that a Dresdner sale
could generate about 8 billion euros for the Munich-based insurer.
Under the merger deal, Dresdner's investment house, Dresdner
Kleinwort, would also face a major restructuring.
But company sources have also indicated to the dpa news agency that
the deal could still fall apart as a result of questions arising
about the valuations placed on aspects of the merger.
(Deutsche Welle)
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