The government of Germany has reportedly decided to sell its 38% interest in banking company IKB, Agence France-Presse has revealed, citing German business daily Handelsblatt.
Although potential acquirers have not been revealed, Handelsblatt cited a document from the German bank KfW that notifies private German banks that they can take part in the sale. KfW acts as an investment bank for the government of Germany and manages its 38% stake in IKB.
According to Agence France-Presse, citing Handelsblatt, participation in the sale would be in return for the banks’ help in a recent rescue of IKB, which has been badly affected by the US home loan crisis.
IKB was recently saved from bankruptcy when KfW extended a line of credit worth E8.1 billion and other German banks were ready to add another E3.5 billion if needed.