Consolidation is imminent as BayernLB eyes WestLB

City A.M. Reporter
BayernLB is interested in snapping up fellow German lender WestLB, a source close to the Munich-based bank said yesterday.

The move comes amid a fresh push for consolidation among state-controlled landesbanks in Europe’s biggest economy.

“The considerations are at a very early stage,” the source said, adding negotiations are to be held with an open outcome.

The WestLB supervisory board discussed BayernLB’s offer to hold talks at a meeting
yesterday, a source close to WestLB added.

German Finance Minister Wolfgang Schaeuble recently launched a new campaign to merge publicly-owned landesbanks, which suffered in the credit crisis and could lose support more quickly under new capital rules.