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. Last Updated: 07/27/2016

German Banks Mull Allianz Link




FRANKFURT, Germany -- Commerzbank AG and Dresdner Bank AG said Sunday they would continue their talks this week following a meeting Saturday, which, as expected, produced no conclusion on whether to merge.


Commerzbank executives will brief a meeting of their supervisory board Monday, but will have no concrete plans to present to them, bankers said.


They said a three-way link with insurer Allianz AG was one of several options for a merger which would create Germany's second largest bank with a market value of nearly $40 billion, behind Deutsche Bank with over $50 billion.


One person familiar with the talks said Sunday that the Allianz option had a "certain charm" and had a good chance of being accepted.


But both banks poured cold water on investor hopes for a quick deal, saying it would probably take until the end of July before they were ready to report any results.


"We are still at the stage of talks, not negotiations," one banking source said Sunday. "No decisions on this whatsoever are on the agenda of the supervisory board meeting. There will be a report on the status of the talks."


He said he still believed that the talks will take another two to three weeks to reach a decision.


The banks are understood to be tackling the sensitive issue of management board positions in a merged bank.