Deutsche Bank Reduces Allianz Shareholdings

June 7, 2000

Deutsche Bank (DB) announced Tuesday that it had sold approximately 7 million shares of its holdings in Germany’s Allianz at €362 ($343) per share totaling DM 2.5 billion ($1.3 billion).

The sale reduces DB’s holdings in the giant insurer from around 7 percent to 4.1 percent. Bank president Rolf Breuer said there were no immediate plans to further reduce DB’s stake.

The announcement comes in the wake of the failed merger attempt between BD and Dresdner Bank with significant Allianz participation. It also represents one of the first big reductions in cross holdings in anticipation of the passage of German tax reforms aimed at eliminating the current 50 percent capital gains tax on sales of financial assets.

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