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Dresdner turns to German state for help-paper

Mon Jan 5, 2009 3:25pm EST

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FRANKFURT, Jan 5 (Reuters) - Dresdner Bank parent Allianz (ALVG.DE) and Commerzbank (CBKG.DE) are in talks with the German government over state aid for Dresdner Bank, a German newspaper reported, citing financial sources.

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Talks with Berlin's financial industry rescue fund, SoFFin, which took place on Monday and are expected to come to an end next week, addressed possible state guarantees for Dresdner Bank, Handelsblatt said in an article for Tuesday's paper.

Allianz and Commerzbank both declined to comment on the report. SoFFin was not immediately reachable for comment.

Commerzbank was also trying to get guarantees from Allianz for Dresdner, Handelsblatt added without citing sources.

Some 15 banks have asked the German government for support, according to earlier media reports.

Commerzbank, which will pay insurer Allianz just over 5 billion euros ($6.96 billion) for Dresdner, became in November Germany's first commercial bank to turn to the government for capital and has been granted 8.2 billion euros.

Its peers have requested only state loan guarantees. (Reporting by Philipp Halstrick and Peter Maushagen in Munich; Editing by Brian Moss)



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