Dresdner, Commerzbank Focus on Value Problem

July 14, 2000

Dresdner Bank and Commerzbank remained in negotiations Friday, trying to reconcile the relative valuations of the banks. Both banks are concerned with keeping major shareholders happy.

Allianz, the major Dresdner shareholder, will have to be accommodated in some way by the deal according to analysts and observers. One possibility is to give Allianz a greater stake in the new group.

One analyst told Reuters news service “if it fails, Commerzbank will start making its old noises about pursuing its strategy, but it will still be under pressure from its shareholders to unlock what value there is. Dresdner will have nowhere to go in Germany and will have to look outside in terms of partnerships. Nobody will buy outright.”

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