German bank IKB sold for 150 million euros: reports

0 Comments | AFP, August, 2008

BERLIN (AFP) — German bank IKB, a casualty of the subprime mortgage crisis, was sold to US private equity group Lone Star for 150 million euros, German media reported Saturday.

"According to informed sources, the amount (of the sale) is 150 million" euros (222 million dollars), the newspaper Die Welt said.

IKB had been rescued by state development bank KfW, which earlier this week did not disclose the sale price of its 91 percent stake in IKB. KfW said only that it was a "low three digit million euro amount" -- meaning presumably anything between 100-300 million euros.

IKB, a specialist in loans to small- and medium-sized business based in Duesseldorf, invested heavily in securities tied to high risk subprime mortgages in the United States.

When US...