Commerzbank to acquire mortgage financer
15 November 2005, FRANKFURT - Commerzbank is close to a takeover of German mortgage finance house Eurohypo and is raising funds through a sale of its stake in Italian bank Intesa, the German bank said Tuesday.
15 November 2005
FRANKFURT - Commerzbank is close to a takeover of German mortgage finance house Eurohypo and is raising funds through a sale of its stake in Italian bank Intesa, the German bank said Tuesday.
Commerzbank held 2.9 per cent of Banca Intesa. It said they would be sold in the course of Tuesday. The 200 million shares had an approximate market value of 800 million euros (940 million dollars).
Commerzbank, which ranks as Germany's second-biggest independent commercial bank after Deutsche Bank, is to expand its previous 32-per-cent stake in Eurohypo by acquiring the shares of partners Deutsche and Dresdner Bank.
An announcement from Commerzbank in Frankfurt said terms had been settled. Eurohypo, which is Europe's biggest combined mortgage and government-bond lender, and former post office bank Postbank have been the most attractive banks currently on sale in Frankfurt.
Deutsche will sell its 38-per-cent Eurohypo stake and Dresdner, a unit of the Allianz insurance group, will sell a stake of 29 per cent.
"Commerzbank is following a strategy of expanding its position as Germany's leading independent commercial bank," the announcement said.
Financial markets were roiled by the move, and huge volumes of Commerzbank stock changed hands in Frankfurt Tuesday morning. The price of the shares fell 1.4 per cent to 22.55 euros, as more than 4.3 million Commerzbank shares changed hands in barely an hour.
Subject: German news