Big job cuts could follow Dresdner sale

Aug. 30, 2008 at 8:34 AM
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BERLIN, Aug. 30 (UPI) -- The imminent sale of the German investment firm Dresdner Kleinwort could put thousands of jobs at risk, sources say.

Deep cuts could follow an expected sale of the firm by insurance company Allianz, perhaps to Germany's Commerzbank, unnamed sources told the Financial Times Saturday.

"It would be safe to assume it would mean closure of riskier parts of the (Dresdner Kleinwort) business that do not fit with Commerzbank," one source told the newspaper.

Another source added, "I am not sensing that this deal is about embracing investment banking."

Allianz, Europe's largest insurance group, said this week it would not split up the investment firm and perhaps retain a portion of it. Instead, it would seek to sell the company as a whole, meaning any potential buyers would likely come armed with a strategy to reduce employment in an investment banking field that has been rocked by the international credit crisis.

Sources told the Financial Times China Development Bank has shown interest in Dresdner and remains a possible buyer.

The newspaper said a deal could be announced Sunday.

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