March 21, 2007
Commerzbank: Controlling agreement and squeeze out at Eurohypo bring advantages for both institutes
Commerzbank has announced today, that at the next Annual General Meeting of its subsidiary Eurohypo a resolution concerning a squeeze out is to be brought about. Such a step would be advantageous for both banks and would create the necessary transparency on the capital markets as well as clarity for the shareholders in the free float.
Klaus-Peter Müller, Chairman of the Board of Managing Directors of Commerzbank, gives the following reasons for the decision: "Such a resolution opens up the necessary strategic and operative options as well as greater flexibility for a continued successful development at Eurohypo. It goes without saying that Eurohypo remains a legally independent unit with its own brand name. There will be no alterations to this proven structure."
The squeeze out is to be seen in close conjunction with the conclusion of the also planned controlling and profit transfer agreement. The Annual General Meeting has to decide on both measures and an appraisal report has to be prepared in each case. If these measures are not combined, a new appraisal report would have to be drawn up in case of a squeeze out at a later stage.
