WestImmo Sale: Bank turns down current offers
WestLB requests German government to file application with EU for extension of deadline
WestLB has requested the German government – after consultation with the Supervisory Board and in agreement with its owners – to file an application with the European Commission by October 31, 2010 for an extension of the deadline in connection with the sale of Westdeutsche ImmobilienBank AG (WestImmo). An extension of the sale deadline would enable WestLB to divest WestImmo at a time when the general market conditions have normalised. Moreover, during the period of an appropriate deadline extension it will be possible to improve the structural requirements for a sale, in particular with regard to WestImmo´s funding needs. WestLB is currently required to sell its WestImmo subsidiary by December 31, 2010.
The offers for WestImmo that are currently on the table are unacceptable from an overall business point of view. In light of this, the Managing Board and Supervisory Board have decided that, on the basis of the offers submitted, the sale of WestImmo will not be pursued further.
“This is highly regrettable, particularly as WestLB is fully committed to complying with the conditions imposed by the European Commission. WestLB has resolutely pushed ahead the sales process and ensured a very high degree of transparency for the bidders. As things stand, no other decision was possible,” said Dietrich Voigtländer, Chairman of the Managing Board.