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Commerzbank May Sell Dresdner Units In Switzerland, Luxembourg

Wendy Spires Assistant Editor 23 April 2009

Commerzbank May Sell Dresdner Units In Switzerland, Luxembourg

Germany’s Commerzbank will have to sell German bank Eurohypo, along with its Dresdner Bank operations in Switzerland and Luxembourg, as part of a state aid package from the German government, according to media reports.

It is understood that the package would see Commerzbank receive a total of €18.2 billion ($23.49 billion) and the German authorities taking a 25 per cent stake in the bank. Commerzbank has already received €8.2 billion, but according to German media reports, the European Commission has delayed approving the rest of the funding amid concerns the bank will then have an unfair competitive advantage.

Eurohypo, which was acquired by Commerzbank in 2005, specialises in the property market and also has a private client business. Commerzbank acquired Dresdner from German insurer Allianz in January this year.

It was also reported that Commerzbank has appointed Goldman Sachs for the sale of Reuschel & Co – a Munich-based private bank.

A Commerzbank spokesperson declined to comment on the reports when contacted by WealthBriefing, but said an ongoing review of all the bank’s activities was taking place.

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