German bank Commerzbank announced late Thursday that it would accelerate its planned takeover of Dresdner Bank from the current parent, insurance group Allianz, at barely half the earlier price.
Dresdner's green will turn Commerzbank yellow sooner
Under a revision of the deal first struck in August, Frankfurt-based Commerzbank, Germany's second largest bank, will complete the takeover in January, rather than in the second half of 2009 as originally agreed.
After the meltdown of global financial and credit markets that began in September, the value of the deal has been revised down to 5.1 billion euros ($6.6 billion), about three-fifths in cash, from the initial 9.8 billion euros, which was to have been only 25 percent in cash with the rest in stock.
Munich-based Allianz will walk away with 18.4 percent of the new Commerzbank instead of 30 percent.
Commerzbank and Allianz both issued statements describing the accelerated takeover as in the interests of all parties amid the current global turmoil in banking and on financial markets.