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
22 Oct
VWS
Pokerchamp - Per Vimmer er gulddrengen trænet hos Goldman Sachs, som har lært den superliberalistisk..
22
20 Oct
VELO
Match, så har jeg set lidt på mine handler og depoter.   Må begynde med at konkludere, at mit handel..
17
20 Oct
VELO
Tvivler på at du får ret. Aktieanalytikerne siger allerede før godkendelsen en KORTSIGTET kurs på 2..
17
22 Oct
BAVA
Jeg tror ikke, at mange her i dette forum er i tvivl om, hvem der er et fjols... Du får det til at l..
14
21 Oct
VWS
Hvis du var en ludo brik var du så ikke slået hjem nu ???
14
23 Oct
VWS
Quantum Utility Generation er på den anden side af "Mountain Friends", og de kan nu fortsætte deres ..
12
23 Oct
VWS
Aputsisaq - Blev der nødvndigt at starte en negativ tråd fordi at Stockrosen lige havde startet en p..
11
23 Oct
VWS
Jeg har kigget lidt på Vestas USA kunde First Wind, for at se hvordan det går med de 3 Wind Power pr..
11
23 Oct
 
Nej, der er klart tale om en Hanging Penis formation. Ikke et godt tegn. Jeg køber først når vi har ..
11
21 Oct
VWS
Vestas øverst chef for "Americas" - Chris Brown virker meget optimistisk. Han har udtalt til Recharg..
11

Tech Companies Send Criticism Along With NSA-Related Data -- Update

04/02/2014 00:06:00
By Danny Yadron Technology companies including Google Inc. and Microsoft Corp. released new figures on the amount of data requests they received from U.S. ..

U.S. Hot Stocks: Hot Stocks to Watch

03/02/2014 14:07:00
Among the companies with shares expected to actively trade in Monday's session is Herbalife Ltd. (HLF). Herbalife Ltd. (HLF) raised its fourth-quarter outl..

Pfizer Study Meets Primary Endpoints

03/02/2014 13:05:00
Pfizer Inc. (PFE) said Monday that a Phase 2 trial of its advanced breast cancer treatment met its primary endpoint. Pfizer said a study comparing the effec..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Lundbeck presents new efficacy and safety data analyses for desmoteplase in patients with acute ischaemic stroke
2
„Olainfarm” Goes on Baltic – Nordic Roadshow
3
Starbreeze AB: Starbreeze announces PAYDAY collaboration with independent studio Lion Game Lion.
Euroinvestor around the globe: Euroinvestor.dk | Euroinvestor.se | Euroinvestor.no | Euroinvestor.fr | Forexinvestor.com| Wisselkoersen.nl | Valuta.se | Valutaveksel.no | Divisas.es | Valute.it
Copyright Euroinvestor A/S 2014   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.
 
26 October 2014 04:22:21
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20141024.3 - EUROWEB7 - 2014-10-26 05:22:21 - 2014-10-26 04:22:21 - 1000 - Website: OKAY