Bloomberg News

WestLB Says Apollo Global’s Bid for Westimmo Isn’t ‘Acceptable’

December 20, 2011

Dec. 15 (Bloomberg) -- WestLB AG, a state-owned German lender, said the planned sale of real-estate unit Westdeutsche ImmobilienBank AG to Apollo Global Management LLC failed because the price offered was “not acceptable.”

“It was our declared aim to bring the sale negotiations to a conclusion, also with a view to preserving jobs,” WestLB’s Chief Executive Officer Dietrich Voigtlaender said in today’s statement. “The further deterioration in the market environment and the economic valuation leave us no choice. The transaction and above all extended liability risks would be untenable for the bank and its owners.”

In June, WestLB’s shareholders agreed with German authorities and the bank to split the state-owned lender in a bid to win European Union approval for aid received during the global financial crisis. Landesbank Hessen-Thueringen Girozentrale is in talks with WestLB to take over its so-called Verbundbank, which will serve regional savings banks.

--Editors: Jon Menon, Keith Campbell

To contact the reporter on this story: Niklas Magnusson in Hamburg at nmagnusson1@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net


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