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FACTBOX: Terms, details of Commerzbank/Dresdner deal
FRANKFURT (Reuters) - German insurer Allianz is selling its Dresdner Bank unit to Commerzbank in a two-step deal set to be wrapped up by the end of 2009.
Here are highlights of the agreement announced on Sunday:
* Allianz puts the total consideration at 9.8 billion euros ($14.5 billion) and says the deal includes up to 975 million euros to cover specific asset-backed securities of Dresdner Bank
* Commerzbank says it will pay around 8.8 billion euros, of which 1.6 billion is cash and the rest is in shares. It will initially buy 60.2 percent, then the rest by the end of 2009
* With a stake of nearly 30 percent Allianz will become the largest shareholder of Commerzbank
*The combined bank will have nearly 67,000 employees but will cut around 9,000 jobs, of which 2,500 will be outside Germany. Around 70 percent of these cuts relate to back office, control and production units, as well as in investment banking
* The partners expect synergies after deduction of restructuring costs of around 5 billion euros
* Allianz purchases Cominvest, Commerzbank's asset management entity, for 700 million euros
* Allianz to improve insurance sales through access to an expanded network of branch offices of the new bank and to strengthen its bancassurance strategy
*Oldenburgische Landesbank remains with Allianz Group
The combined bank will have 11 million private customers in Germany and 1,200 branches in the country; it will have more than 100,000 corporate and institutional clients
Insurance cooperation by Commerzbank and Generali will not be renewed
(Reporting by Michael Shields; Editing by Andrew Callus)
($1=.6784 Euro)
