Depfa Bank, a leading supplier of financial services to public-sector clients, said it planned to auction its German unit Deutsche Pfandbriefbank, which has net assets of about €100 billion.
Depfa Bank, based in Dublin but listed on the stock exchange in Frankfurt, said in a statement it expected the sale to be 'of considerable interest to potential buyers, since Deutsche Pfandbriefbank is a highly efficient, profitable and focused public finance institution.'
It expected the transaction to be completed by the end of the third quarter of 2004, it said. A Depfa spokesman said the sale would provide a good opportunity for foreign banks looking to establish a foothold in Germany.
A number of foreign players, such as Citigroup, ABN Amro, Royal Bank of Scotland, HSBC, Credit Suisse, UBS or even BNP Paribas, are currently eyeing the highly-fragmented German market where home-grown banks are seen as attractive takeover targets given their low market valuation.
By selling off the unit, Depfa will be able to 'de-leverage its balance sheet and as a consequence strengthen its rating in the medium term,' the parent company said.
