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Deutsche sells $1.5B stake
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October 29, 1999: 3:44 a.m. ET
Allianz shares sold, more asset sales from Deutsche Bank likely
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LONDON (CNNfn) - Deutsche Bank sold 5 million shares in insurance partner Allianz Friday, and indicated that more asset sales are on the way.
Deutsche raised 1.375 billion euros ($1.5 billion) from the sale to "international investors" at an average price of 275 euros, leaving the world's largest bank with a 7 percent holding in Allianz, Europe's second largest insurer.
Deutsche has huge holdings in German industrial and financial institutions, ties which cemented the bank's position at the heart of Germany's post-war industrial boom.
Recently, the bank has said it intends to more actively manage its asset portfolio to generate better returns for shareholders.
Deutsche and Allianz have had a powerful financial partnership for many years, and there is no suggestion the share sale indicates a termination of their close relationship.
Deutsche has promised not to sell more Allianz stock for at least 180 days. The bank posted capital gains of more than 1 billion euros on the deal. Uncertainty over the tax treatment of capital gains from the sale of parts of its asset portfolio is one of the factors which has held up the slimming down of the bank's holdings.
While Deutsche would not confirm that all shares were sold at a price of 275 euros, news of the deal sent Allianz stock skidding. At the open in Frankfurt the insurer's stock slid 2 percent, or more than 5 euros to 284.50 euros. Deutsche shares moved in the opposite direction, rising 1.4 percent to 67.30 euros.
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Deutsche Bank
Allianz
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