Deutsche Bank, the German bank, has called a halt to the takeover of Gerling NCM by Swiss Re. The only possible solution would be to involve a neutral investor in the deal. Gerling NCM achieved turnover of Ђ1.35bn in 2002 in its credit insurance business.
The problem with the current negotiations is the value of Gerling NCM. The financial sector believes it is worth Ђ500m-Ђ600m, but this is far less than the sum agreed by Deutsche Bank, Swiss Re and Gerling NCM a couple of years ago, when they said it had a value of approximately Ђ1bn.
Source: Financial Times
