Lloyds TSB in talks to buy Dresdner

Sat Jun 21, 2008 4:58pm BST

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FRANKFURT (Reuters) - Lloyds TSB has been in talks with German insurer Allianz for weeks over the possible acquisition of Dresdner Bank, Germany's Der Spiegel reported without citing sources.

It added Lloyds had already submitted a non-binding bid for Dresdner, making it the third bank to express serious interest along with Commerzbank and Spanish lender Santander.

The magazine reported Allianz was prepared to write down billions in Dresdner's assets as the bank is still valued at roughly 12 billion euros (9.5 billion pounds) in its books but Allianz likely would gain something closer to 8 billion euros from a disposal.

Neither Allianz nor Lloyds were reachable for a comment.

(Reporting by Christiaan Hetzner)

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