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Deutsche Bank Sheds Stake in Gerling

May 7, 2003

FRANKFURT, Germany (AP) _ Deutsche Bank, Germany’s biggest banking concern, said Wednesday it has shed its 34.6 percent stake in insurance group Gerling, whose sinking value contributed heavily to the bank’s first-quarter net loss.

Terms of the transaction were not disclosed.

Deutsche Bank said it was transferring 28.6 percent of Cologne-based Gerling to company patriarch Rolf Gerling and the remaining 6 percent to supervisory board chief Joachim Theye.

Deutsche Bank last week reported a loss of 219 million euros ($250 million) for the first quarter, compared with a profit of 597 million euros for the same period last year.

Deutsche Bank blamed the bulk of the loss on the fallen value of its stake in Gerling and stressed that its core business remains strong.

Also Wednesday, Deutsche Bank said it and reinsurer Swiss Re agreed to restructure the ownership of a Gerling unit, credit insurer Gerling NCM Credit and Finance AG.

A consortium led by Swiss Re and Deutsche Bank will acquire Gerling NCM from the Gerling group, with Swiss Re holding 47.5 percent and Deutsche Bank holding 35.3 percent.

The Gerling group will receive 120 million euros ($137 million) from Deutsche Bank and 60 million euros ($68.5 million) from Swiss Re.

Deutsche Bank’s shares were down 2.1 percent at 48.59 euros ($55.54) in afternoon trading on the Frankfurt exchange.

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