Dresdner Bank has entered into exclusive negotiations to sell a non-strategic portfolio of German loans of up to E2 billion after completing a bidding period.
Following a competitive bidding process, Dresdner Bank has decided to enter into exclusive negotiations with a consortium consisting of Lone Star and Merrill Lynch. The loan portfolio is part of the non-strategic business of Dresdner Bank, which is managed by the Institutional Restructuring Unit (IRU).
Most of the loans are corporate loans, while some 35% are commercial real estate loans. The transaction is expected to be executed by mid-year 2005.
The planned transaction introduces the final phase of the IRU, which will finish its restructuring tasks completely by the end of 2005. The IRU, which took up its work in early 2003, is well ahead of schedule in reducing its portfolio from initially E35.5 billion. In Germany, the IRU has reduced its portfolio from E9.2 billion to currently around E3.5 billion of loan exposure, not including this transaction.