dresdner

The separation was to have been completed this month but has now been postponed, suggesting Dresdner will be sold in its entirety.

In 2009 it snapped up the Swiss subsidiary of Dresdner Bank, one ailing German bank which had merged with another, Commerzbank.

It has been looking at Germany's Dresdner Bank for months but does not appear to be a favourite to win the deal.

Perhaps most intriguing was the presence of a Chinese bidder, reportedly China Development Bank, in the race for Dresdner.

In June 2007 it was as low as 30. 5 basis points (less than a third of a percentage point), according to Dresdner Kleinwort.

But CDB was never able to submit a formal bid and Allianz over the weekend agreed to sell Dresdner to German rival Commerzbank.

Allianz has explored similar ideas for Dresdner's investment bank several times since buying the bank in 2001.

The current turmoil could lead markets into a vicious circle, warns Domenico Picone, bank analyst at Dresdner Kleinwort.

For months Dresdner's fate was the subject of constant speculation.

Dresdner's investment bank will not be the only one to slim down riskier activities such as proprietary trading.

even investment bank dresdner kleinwort wasserstein has warned not to " equate money with happiness . "

But an alternative deal, to sell Dresdner to China Development Bank, remained an option yesterday, people familiar with Allianz said.

Dresdner also has an investment bank, but Commerzbank plans to ax half its staff and drastically scale back the unit's trading operation.

Post-Dresdner, Mr Diekmann wants to look for more opportunities in the US insurance market.

A Chinese acquisition of Dresdner, a cultural revolution for both sides, would redefine global banking.

With Dresdner gone, Mr Diekmann can only hope there are now fewer bullets to dodge.

David Holmes, head of precious metals at Dresdner Kleinwort in London, said a rise to $850 was "very much on the cards" .

There is also a group of technical experts in the form of virtual organization with Dresdner companies.

A takeover of Dresdner by a China-owned bank is also seen as politically contentious in Germany.

Allianz's supervisory board approved the sale of Dresdner after meeting on Sunday.

Around 4. 9 euro billion of Dresdner's wobblier exposures will be placed in a special vehicle.

In 2008, Beijing denied approval for a China Development Bank bid to buy Germany's Dresdner Bank.

It is the right thing for Dresdner.

Look at when we took Dresdner over, we had to do a big global scaledown.

Finance Industry - China Construction Bank, Citibank, Dresdner

The writer is head of emerging markets and foreign exchange research at Dresdner Kleinwort