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Dresdner Bank aid talks get under way
Nick Goodway06.01.09
Allianz and Commerzbank have begun talks over state aid from the German government for Dresdner Bank.
Dresdner, which is being fully taken over by Commerzbank for €5 billion (£4.6 billion) from insurance giant Allianz, plans to issue a bond of up to €2 billion guaranteed by the state later this week.
Talks with Berlin's financial services industry rescue fund, SoFFin, took place yesterday. Although Commerzbank has already agreed a lower price to buy the 40% of Dresdner it does not already own from Allianz, it is now looking for greater guarantees for the business from the insurer.
Commerzbank received €8.2 billion of capital from the taxpayer in November. It is expected to slim down investment banking arm Dresdner Kleinwort, which has extensive operations in London. Up to 15 German banks have applied for state aid, including two which plan to issue state-backed bonds.
