Allianz mulls major banking merger

Frankfurt, Mar 28 | Updated: Mar 30 2008, 04:42am hrs
The German insurance company Allianz is mulling the possibility of contributing its banking unit Dresdner Bank to a three-way merger that would include Commerzbank and Deutsche Postbank, a press report said on Friday. The discussions are still at an early stage however, and negotiations are not currently underway, the Frankfurter Allgemeine Zeitung said.

A combined bank would have clout similar to that of the biggest German bank, Deutsche Bank. Under a three-way set-up, Dresdner Bank would be transferred to Commerzbank as an asset and then the new institution would acquire Postbank, which is due to be sold, the report said. Germanys fragmented banking sector is widely expected to be consolidated, but financial turbulence in the wake of the US subprime mortgage crisis has also demanded the attention of top bank directors.

AFP