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
12 Sep
 
Man har forbarmet sig over mig - set at jeg kan opføre mig, som man bør   når uberettiget trend- ell..
63
15 Sep
VWS
  Her er lidt at tænke over for en enhver Vestas aktionær!   Den 6. nov. 2012 var der valgdag i USA ..
39
11 Sep
FING-B
EN SORT SORT DAG !!!!!   Dette er nok det værste jeg nogensinde har oplevet som aktieejer.   Først, ..
36
14 Sep
DLH
Den 105 år gamle historie om den tidligere storhandler af tropisk træ, Dalhoff, Larsen og Horneman, ..
23
17 Sep
 
Jeg har lagt mærke til, at det er de samme personer, der igen og igen er negative til stort set alt...
18
12 Sep
 
Uha, nu trænger alpehue igen igen til opmærksomhed. Magen til barnagtig midaldrende selvudnævnt såka..
18
11 Sep
BIOPOR
  I fredags skete der noget interessant i US.  Astute Medicial fik godkendt deres NephroCheck (NC)af..
17
15 Sep
FING-B
Så stop dog for pokker med alt det sædvanlige fnidder fnadder og forstå at dette debatforum stensikk..
14
14 Sep
DLH
Udemærket opdatering på casen, Stockwatch. Et par kommentarer dog;   De laver et negativt EBIT på c..
13
11 Sep
FING-B
mine tanker og største respekt går til xo33, som det lykkedes plattenslager-debatørerne at få fjerne..
13

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
Medtronic Launches New Balloon Kyphoplasty Products for Treating Spinal Fractures
2
Shore Capital Group Limited : Interim results for the six months ended 30 June 2014
3
Hi-Crush Partners LP Announces Long-Term Contract with Keane Group
4
Mariana Resources Ltd : Secures Funding to Fund Growth
5
Pernod Ricard - BNP Paribas Primary New Issues : Stabilisation Notice
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.
 
18 September 2014 02:36:13
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20140915.2 - EUROWEB5 - 2014-09-18 03:36:13 - 2014-09-18 02:36:13 - 1000 - Website: OKAY