01/09/2009 07:21:52

Commerzbank drops Dresdner Kleinwort name

FRANKFURT (Reuters) - Commerzbank warned of tough times ahead, as it defended the controversial 5 billion euro (4.4 billion pound) takeover of rival Dresdner Bank a year ago that will now see the Dresdner Kleinwort brand name dropped.

"We have moved forward with the integration quicker than expected," chief executive Martin Blessing said in a statement on Monday, adding while the bank was on the right path, "we still have some tough times ahead of us."

Commerzbank announced the takeover of Dresdner a year ago and is in the process of cutting 9,000 jobs. It has completed about 1,800 of those cuts so far, the bank said.

The Frankfurt-based lender has drawn fire from shareholders for completing a risky acquisition in the midst of a global banking crisis.

Blessing, in part responding to political pressure from the German government, brokered a deal to buy Dresdner shortly before the collapse of Lehman Brothers last year, forcing him to press ahead even as the crisis worsened.

"Sometimes, people ask me whether we would take over Dresdner Bank again as of today. My view is clear: We have taken the right decision and I am pleased that we are implementing it despite the difficult environment," Blessing said.

Commerzbank said it will drop the storied Dresdner Kleinwort brand name as it overhauls its investment banking operations. Dresdner Bank acquired Kleinwort Benson in the 1990s.

Commerzbank expects to complete the integration of its investment banking operations with those of Dresdner Bank by year-end.

The banks will harmonise customer trading and post trade processing systems as part of further integration steps, Commerzbank said.

The two-phase acquisition of Dresdner Bank from insurer Allianz was completed on January12, and is partly responsible for forcing the German government to step in to save Commerzbank from collapse.

Matthew Clark, an analyst at Keefe, Bruyette & Woods said he was "dismayed" that Commerzbank bought Dresdner which was "borderline insolvent" at the time.

As part of its 18.2 billion euro bailout, Commerzbank was forced to accept stringent restrictions on strategy. It has to divest assets including its Eurohypo real estate financing unit, refrain from making acquisitions, and quit some markets.

For 2009, costs associated with integrating Dresdner Bank are expected to be around 2 billion euros.

The rescue of Commerzbank landed the German government a 25 percent stake in the retail and investment bank.

Commerzbank has said it plans to return to profitability by 2011.

(Reporting by Edward Taylor and Philipp Halstrick; Editing by Dan Lalor)

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
27 Sep
OMXC20CAP
Så mangler vi bare, at du sletter din profil !   :D   Gobe
46
23 Sep
NETS-TEMP
Det her er en klassisk case, hvor kapitalfondene på for kort tid, har fået lov til at realisere en s..
17
21 Sep
GEN
12% af dette er Genmabs - de har trinvis stigende royalty gående fra 12% til 20%. Og hvis man tolker..
16
25 Sep
 
Professor Jesper Rangvid fra CBS kom fredag med en stor kritik af private danske aktionærer. Han har..
14
26 Sep
SDRLO
Jeg vil gerne påtage mig selv status som euroinvestors officielle lortemand. Jeg advarer mod lorteak..
13
26 Sep
OMXC20CAP
Er der ikke en admin eller sådan noget der kan slette baronen? Magen til evnesvag person der er yder..
13
26 Sep
FING-B
Please, lad nu idioten være...   Det er jo kun fordi vi bliver ved med at fodre disse total idioter ..
11
21 Sep
BAVA
  Betydningen af de reviderede data er nok begrænset omend de peger i den rigtige retning.   Når jeg..
11
27 Sep
 
Som investor bør man ind imellem kigge lidt ud i fremtiden. Jeg kigger ofte i OECD's rapporter, samt..
10
26 Sep
OMXC20CAP
Mener du "over bord"!? 
9

Alliance Trust PLC : Net Asset Value(s)

27/09/2016 13:14:59
ALLIANCE TRUST PLC                                    At the close of business on Monday 26 September 2016: The Company's NAV per ordinary sha..

Holding(s) in Company

27/09/2016 10:02:38
For filings with the FCA include the annex   For filings with is..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
UBISOFT ENTERTAINMENT : Ubisoft® acquires mobile publisher Ketchapp
2
FLSmidth and Chinese mining equipment supplier sign joint venture agreement
3
Bionor Pharma ASA : Primary inside Notification - Cecilie Grue
4
Nets A/S: No termination or withdrawal of the IPO of Nets
5
THE SOI INDUSTRY CONSORTIUM PRESENTS ITS INAUGURAL AWARDS IN SHANGHAI, RECOGNIZING OUTSTANDING INDIVIDUALS FOR THEIR CONTRIBUTIO

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2016   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
27 September 2016 23:18:41
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20160921.1 - EUROWEB3 - 2016-09-28 00:18:41 - 2016-09-27 23:18:41 - 1000 - Website: OKAY