Frankfurt - Europe's biggest insurer Allianz SE is holding "intensive" negotiations with Beijing's state-owned China Investment Corporation (CIC) over the possible sale of its banking offshoot Dresdner Bank, the German media reported Thursday. Citing industry sources, the Munich daily Sueddeutsche Zeitung reported that CIC is seeking to acquire both Dresdner's retail business as well as its investment banking operations.
An Allianz spokesman declined to comment on the reports, saying that the insurer "did not comment on market rumours."
However, the Sueddeutsche Zeitung report said that the Allianz management was divided over the sale of Dresdner to the Chinese investment fund.
Dresdner Bank unveiled earlier this month plans to divide its operations into two completely separate entities under a holding company so as to allow it to participate more actively in the drive for consolidation in Germany's "overbanked" banking industry.
Thursday's press report follows another report earlier this week in Germany's Manager Magazin saying Allianz planned to combine Dresdner Bank's retail business with Deutsche Postbank AG, the banking unit of Germany's postal service.
The speculation about Dresdner's future comes about seven years after Allianz acquired the Frankfurt-based bank for 23 billion euros (36 billion euros) as part of efforts by the insurer to cash in on the then German government's plans to promote private pension schemes.
However, Dresdner's operating profit halved last year, slumping to 730 million euros.
In the meantime, Berlin is drawing up legislation to protect German companies from falling into the hands of foreign sovereign wealth funds.
