Stuttgart-based Landesbank Baden-Württemberg, one of Germany’s largest banks, is to take over Leipzig-based Landesbank Sachsen Girozentrale, as of 1 January 2008, after the smallest of the state-run Landesbanks was hit by financial problems related to the US subprime credit crisis. SachsenLB had to be provided with a €17.3 billion credit line by Germany's savings banks after it struggled to refinance its Ormond Quay fund. LBBW will pay at least €300 million ($410 million), with the final purchase price to be determined after a risk assessment at the end of the year. It is providing €250 million immediately in cash to supply liquidity for SachsenLB. Sachsen employs around 600 staff and had total assets of roughly €68 billion at the end of last year. Its present owners are the Sachsen-Finanzgruppe and the Free State of Saxony. LBBW said it will shift the focus of Sachsen's business to medium-sized business clients and wealthy private clients after its takeover of the financially troubled state-run bank. It plans to maintain SachsenLB's headquarters in Leipzig, Germany as well as the company's workforce. LBBW is among Germany’s five largest banks, with total group assets of €428 billion, over 12,000 employees and over 200 branch offices. Outside Germany it has branches in New York, London and Singapore as well as a large number of representative offices.