Dresdner Kleinwort finally found a buyer in Commerzbank, which announced Sunday night that it plans to pay $14.5 billion for the German bank. Alas, the mildly positive news ends there: Commerzbank plans to fire 9,000 jobs DW staffers and then ditch the Dresdner name.
Reuters: Commerzbank outlined its plans to cut 9,000 jobs and shrink investment bank Dresdner Kleinwort to a rump after buying Dresdner Bank, but investors were unhappy about the $14.5 billion deal.
Allianz is selling the bank in two tranches to create a stronger German number two behind Deutsche Bank. It is a deal that will trigger one of the biggest rounds of job cuts in banking since the markets crisis began…
Investors showed their appreciation for the deal by dumping shares in Commerzbank like it was going out of style. The stock dropped 12 per cent, indicating it would be increasingly difficult for the deal to be completed, and reducing the value of the deal since most of the purchase price will be paid in stock.
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