Allianz Desperate To Dump Dresdner, But No One Wants It

The problem with trying to sell a bank during an economic crisis: buyers don’t want to risk saddling themselves with balance sheets overloaded with crap.

German insurance company Allianz has been struggling to sell Dresdner Kleinwort, as the bank continues to post losses. How tough is the sale? Even Russian and Chinese banks aren’t interested.

NYT: The German insurance company Allianz has struggled to find a buyer for its banking unit, Dresdner, in the face of subprime write-downs and a tight credit market…

Some analysts say the moment for any deal may have passed, but several people with knowledge of the discussions, who did not want to be identified, said negotiations were still active. These people said that although a sale to another German company was the most likely outcome, Dresdner could still be broken up and sold…

The stumbling block has been price, as continued volatility in the financial sector lowers the value of Dresdner’s securities unit, Dresdner Kleinwort, which posted a loss this week for the fourth consecutive quarter…

Possible buyers that have been mentioned include Commerzbank, Deutsche Postbank, Grupo Santander of Spain, BNP Paribas of France, China Development Bank, the China Investment Corporation and even Sberbank of Russia.

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