Commerzbank speeds up takeover of Dresdner Bank

Germany's second biggest bank, Commerzbank, says it will take control of Dresdner Bank sooner than planned and for less than expected so as to integrate it more quickly against a backdrop of volatile financial markets.

The acquisition of Dresdner from insurance giant Allianz will be made at a sharply lower price, and finalised in January, rather than in the second half of the year, Commerzbank said in a statement late Thursday.

"Commerzbank will achieve 100 percent of Dresdner Bank a lot earlier than originally assumed," it said.

Commerzbank already owns 60 percent of Dresdner and it will pay some three billion euros (3.9 billion dollars) in cash plus Commerzbank shares and the online brokerage comdirect for the remainder.

The bank said the total cost now comes to 5.1 billion euros, much less than the original purchase price of 9.8 billion.

"We are accelerating the transaction and thus speeding up the integration process," Commerzbank chairman Martin Blessing was quoted as saying.

"Amid continued volatile financial markets, this move allows us complete operating flexibility," he said.

Shares in Commerzbank jumped 12.86 percent to 7.76 euros in early Frankfurt trading on Friday while the DAX index of German blue chips had gained 0.52 percent overall.

Allianz showed a gain of 7.39 percent to 64.23 euros.

Dow Jones Newswires quoted NordLB analyst Michael Seufert as saying that the anticipated deal is a "win-win for all," with Commerzbank paying less than expected and Allianz getting rid of its problematic Dresdner unit quickly.

Allianz was initially to receive 151.5 million new Commerzbank shares in exchange for the 40 percent stake but that stock will no longer be issued, the statement said.

Commerzbank shares have lost almost three-quarters of their value in the past three months after the international financial crisis worsened in September and investors questioned whether it would be able to go through with the takeover.

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