April 17 Commerzbank AG, Germany's
second-biggest lender, is in exclusive talks to sell its UK
property business Eurohypo to private equity firm Lone Star and
U.S. bank Wells Fargo & Co, the Financial Times
reported, citing people familiar with the talks.
The FT reported the 4-billion-pound deal, if successful,
would mean Lone Star controlling Eurohypo's distressed debt and
Wells Fargo the performing loans.
Commerzbank declined to comment on the report.
Cash-strapped European banks, including bailed-out
Commerzbank, have so far been reluctant to shed assets to
rebuild their weakened balance sheets as sales could force them
to recognise losses in their portfolios.
Other bidders, such as private equity groups Blackstone
Group LP, Apollo and Starwood Capital, and asset manager
Pimco, were informed on Wednesday that their bids had been
rejected, the Financial Times said.
Commerzbank last year decided to wind down Hypothekenbank
Frankfurt International, previously known as Eurohypo, which
does not underwrite new business anymore but runs off existing
Commerzbank is being advised on the deal by Barclays
, the Financial Times said.