Lone Star eyes sale of Germany’s IKB in Q1 – paper

FRANKFURT, Oct 13 (BestGrowthStock) – Lone Star is getting ready to
sell German bank IKB (IKBG.DE: ) and could strike a deal in the
first quarter of 2011, the U.S.-based private equity company’s
European head told a German newspaper.

“Together with our adviser Perella Weinberg, we will present
possible interested parties to IKB in November,” Bruno Scherrer
told Handelsblatt in an interview published on Wednesday.

IKB, known before the crisis mainly as a lender to mid-sized
German companies, shot to fame in 2007 as the country’s first
casualty of the subprime mortgage crisis in the United States,
when billions of euros of its investments turned sour.

After a bailout, German state bank KfW [KFW.UL] sold IKB to
Lone Star [LS.UL], which now owns 91.5 percent of the lender’s

“There are not so many way to get access to German
medium-sized companies. That could be interesting for a bank,”
Scherrer told the paper.

“Maybe also for a solution in which financial investors or
sovereign funds play a role.”

Scherrer said Lone Star had already been approached by a
party interested in IKB but said it was too soon to sell the
bank at that time. He provided no details.

He also declined to comment on the price for which Lone Star
hopes to sell IKB.

Lone Star is also buying German bank Duesseldorfer
Hypothekenbank, which Scherrer said the private equity company
will restructure into a cleaned-up platform for the market for
Pfandbriefs — a form of covered bonds.

“That could be attractive to foreign investors,” he said.

Asked whether Lone Star plans to do more deals in Germany,
he said: “We learned a lot in Germany. That could certainly be
useful in the consolidation of the landesbanks sector.”
(Reporting by Maria Sheahan; Editing by Michael Shields)

Lone Star eyes sale of Germany’s IKB in Q1 – paper