Of Special Interest
16th December 2011
WestImmo sale collapses - more jobs go at WestLB
WestLB announced the negotiations to sell WestImmo to Apollo Group have collapsed. The sale discussions had included significant guarantees by WestLB and the bank states that given this continued liability the price offered by Apollo made the deal impossible. Dietrich Voigtländer, Chairman of the WestLB Managing Board, said: "It was our declared aim to bring the sale negotiations to a conclusion, also with a view to preserving jobs. However, the further deterioration in the market environment and the economic valuation leave us no choice. The transaction and above all extended liability risks would be untenable for the Bank and its owners."
The bank announced last week that Landesbank Hessen-Thueringen (Helaba) was planning to acquire and integrate Verbundbank, the planned spin-off from WestLB containing the wholesale banking operations targeted at German savings banks. Other entities as the bank is broken up include SPM Bank which will take on the portfolio management activities and Erste Abwicklungsanstalt the 'bad bank'.
Separately Reuters reports that given this setback the bank intends to reduce the headcount by a further 1,000, almost 20% of the current total. This will not be an end to the staff reductions. Some estimates of the jobs required by the three new spin off units is of less than 2,000.