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
29 Mar
VWS
Normal 0 21 false false false DA X-NONE X-NONE ..
78
31 Mar
VWS
Det er i nødens stund at man skal kende sine venner!   Nordberg kommenterede i en artikel i går på a..
23
25 Mar
GEN
Der er intet mere forfriskende end den intellektuelle udfordring, man føler ved en kvalificeret deba..
18
30 Mar
VWS
Vestas skal som alle andre børsnoterede selskaber overholde reglerne for offentliggørelse af nyheder..
16
26 Mar
OMXC20
Der er ingen korrektion igang, bare lidt ligegyldig panik fordi Saudi har bombet nogle oprørere i Ye..
13
30 Mar
 
Denne tråd handlede ikke om biotek, men om aktier med mellem/lav risiko. Meningen med afkast var nok..
12
27 Mar
TORM
Torm slagtes idag, og det var et helt forudsigeligt fald grundet aktieemissionens udvanding af priva..
11
30 Mar
DANSKE
Pas nu på hvis jeres værger læser med herinde. Jeres prøveløsladelse grundet den tilstundende påske ..
10
30 Mar
 
Åh - i første omgang på IT-boblen. Og så burde jeg jo være blevet klogere. Men så gik det så vældig ..
10
29 Mar
 
Ud med de tosser uden realitetssans..så sender EU et signal til omverdenen...Opfør dig ordentligt og..
10

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. ..

#

EuroInvestor: In Focus
#

#

EuroInvestor: In Focus
#

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
GOGL - KNIGHTSBRIDGE SHIPPING LIMITED ANNOUNCES CLOSING OF THE MERGER WITH GOLDEN OCEAN GROUP LIMITED
2
Annual financial statement for 2014: Significant growth with LOQTEQ® (+63%) leads to expansion of trauma business (+27%)
3
VLCCF - KNIGHTSBRIDGE SHIPPING LIMITED ANNOUNCES CLOSING OF THE MERGER WITH GOLDEN OCEAN GROUP LIMITED
4
Cnova N.V. Publishes 2014 U.S. Annual Report on Form 20-F
5
Corning Completes Acquisition of Samsung Electronics' Fiber Optics Business

Copyright Euroinvestor A/S 2015   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.
 
01 April 2015 08:59:34
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20150325.1 - EUROWEB1 - 2015-04-01 09:59:34 - 2015-04-01 08:59:34 - 1000 - Website: OKAY