German banking group WestLB has rejected the current offers on the table for its dedicated real estate lending unit, Westimmo as 'unacceptable from an overall business point of view'. The board of the Landesbank has decided - on the basis of the offers submitted - not to pursue the sale of Westimmo.
German banking group WestLB has rejected the current offers on the table for its dedicated real estate lending unit, Westimmo as 'unacceptable from an overall business point of view'. The board of the Landesbank has decided - on the basis of the offers submitted - not to pursue the sale of Westimmo.
In a statement this week, WestLB announced that it has called for an extension of the deadline by which it has to sell Westimmo. It has asked the German government to file an application with the European Commission (EC) by end-October for an extension.
The EC has given WestLB until end-December to sell Westimmo as a condition for receiving state aid.
WestLB said an extension of the sale deadline would enable it to divest WestImmo 'at a time when the general market conditions have normalised'. Extra time would also make it possible if given extra time, WestLB said, to improve the structural requirements for a sale, in particular with regard to WestImmo's funding needs
'This is highly regrettable, particularly as WestLB is fully committed to complying with the conditions imposed by the European Commission. WestLB has resolutely pushed ahead the sales process and ensured a very high degree of transparency for the bidders. As things stand, no other decision was possible,' WestLB chairman Dietrich Voigtländer said.
