Banks – Commerzbank Buys Dresdner For 9.8 Billion

Dresdner

The stock exchange punishes the name Commerzbank after the purchase of Dresdner Bank to get 9.8 billion euros from insurance giant Allianz, made at the late day. Re cover as an alternative Allianz: After having a drawback beginning directing her into divest approximately inch, 5 percent, half sitting has seen that the positive sign also marks +0.25 percent Mauritius-plans.

As stated by Allianz, the trade represents a landmark in the course of entry of the banking industry in Germany. On the previous ten decades, actually, represents the most significant trade between two German associationsand after the birth – at’98 – HVB, subsequently ended under the hands Of Italian Unicredit.

For economists, Allianz currently gets got the chance to focus on attivià insurance and asset administration, harnessing the broad system of divisions Commerz-Dresdner.

Details

With the selling of all Dresdner in Commerzbank, Allianz will be the most important investor in the new banking category using nearly 30 percent of their funding. The insurance policy group will find the asset management component of Commerz, Cominvest AM.

The performance is going to soon be developed in 2 stages and is likely to be performed no later than the close of 2009. The very first rung on the ladder provides offers up the cost of 60.2 percent Dresdner section of Commerzbank. As a swap Allianz will receive 163.5 million new stocks Commerzbank, leading to funding, comparable to 18.4 percent of their funding. Additionally, Commerz into Allianz can cover 2.5 billion euros in cash.

At the 2nd phase, both banks will probably go into the merger and also Commerz find the rest 39.8 percent of their stocks from Allianz Dresdner.

Dresdner has ever weighed the budgets of Allianz, considering that the purchase in 2001 for roughly 2-4 billion euros, even though many efforts.

For General ‘performance of tactical significance’

“This really is a trade – said Balbinot at an email qualcheora following the statement – includes a powerful tactical value for Commerzbank. As a big investor in Commerzbank priority of the Group has ever gone to accept any settlement which has been accrescitiva value for many of our shareholders. We feel this agreement meets this grade. With respect to bancassurance agreement with Commerzbank, that now generates 4 5 percent of their newest production in Germany – included the management manager of Generali — It is contractually inforce until September 2010. Having Said This, we expressed our readiness to talk about a new solution where protects the interests of all parties involved “