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Sale and Landesbank consolidation to be pursued further

WestLB has been notified, after only six weeks, of the decision by the Managing Board of BayernLB to break off the talks on a possible merger of the two Landesbanks. WestLB notes with regret the decision to suspend the talks with immediate effect before the key issues involved have been clarified.

Dietrich Voigtländer, Chairman of the WestLB Managing Board, said: “From WestLB´s point of view the perspectives opened up by a merged bank were already positive at this early stage. An in-depth assessment of a merger would therefore have been expedient and would have offered sound prospects.”

Voigtländer added: “Following the restructuring efforts of the past two years, the WestLB Core Bank has developed into a bank with a clear focus on four business segments, a significantly improved risk profile, satisfactory capitalisation and a stable funding base. It is therefore an attractive merger partner.”

Friedrich Merz, the Sales Agent for WestLB, emphasised: “The consolidation of the Landesbank sector is a challenging project. This was – and is – clear to all parties involved. WestLB will continue to explore the possible options for a merger in this context.” Merz added: “Parallel to this, and in accordance with the conditions stipulated by the European Commission, the ongoing sales process for the Bank will proceed as planned. The interest in the WestLB Core Bank that has already been registered within this framework shows that the Bank is on the right track both strategically and operationally.”