Lone Star Funds to take 91% stake in subprime victim IKB

Source: Exec Digital USA

Date :8/21/2008 6:42:56 AM

The US-based private equity firm is to take a 90.8 percent stake in the German lender IKB Deutsche Industriebank AG, the German company's biggest shareholder said August 21.

Germany’s state-owned KfW Development Bank did not give the precise terms of its deal but officials said at a news conference that the purchase price was in the low three-digit million euro range.

KfW Chief Executive Wolfgang Kroh said the deal would likely be concluded by October, pending regulatory approval. He did not disclose the exact final price, but said that this was "not a normal sale of shares but rather a complex project made up of myriad elements."

Kroh said the result was a "fair, positive purchase price."

Investors appeared happy that IKB was sold, regardless of the price. IKB’s shares rose by more than eight percent to €2.90 (US$4.30) in Frankfurt trading.