7th May 2009
Kleinwort Benson confirmed today that, as a result of the European Commission’s decision on the German government’s capital injection into the Commerzbank Group, it will be one of the Group entities to be sold. The European Commission has stipulated that Commerzbank must focus its future activities in the German domestic banking arena and dispose of some of its foreign businesses.
Kleinwort Benson has been in discussions over the last few months with parent Commerzbank as to the best solution for the UK and Channel Island based wealth manager, given the possibility of this decision, with the key focus being the protection of the interests of all clients, employees and other key stakeholders.
Commerzbank has given CEO Robert Taylor and the Kleinwort Benson board full reassurance that this will not be a fire-sale. The end of 2011 timeline that the European Commission has granted for the restructuring of the Commerzbank business allows for a full two and half year period in which Kleinwort Benson can be readied for sale. The focus will now be on finding the best partner with which Kleinwort Benson can continue to build its business.
Robert Taylor was quick to reassure clients and employees of the immediate priority for his business - that of continuing to deliver the high level of wealth management and fund administration services that is synonymous with the prestigious Kleinwort Benson name.
"Whilst this announcement may be unsettling for our clients, employees and other key stakeholders, we are fully committed to business as usual and there will be absolutely no disruption to the service clients receive from us. Commerzbank will continue as our parent until a decision is made regarding our new structure and ownership and we will continue to benefit from their full financial backing. Kleinwort Benson is a well capitalised and stable business in its own right, and we are optimistic and excited about the opportunities ahead of us. We are currently exploring a number of interesting avenues and this process will continue in the coming months".
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Kleinwort Benson
Carly Connelly +44 (0) 20 3207 7053 +44 (0) 7506 716718
Rachel Butler +44 (0) 20 3207 7239 +44 (0) 7957 427066
Phoenix
Financial PR:
Gordon Puckey +44 (0) 20 7947 2857 +44 (0) 7799 767468
Sarah Scott +44 (0) 20 7947 2857 +44 (0) 7775 698172
Notes to Editors:
About Kleinwort Benson
Kleinwort Benson is one of the most historic names in UK banking with roots dating back to the 1850s. Kleinwort Benson is the brand name of Kleinwort Benson Private Bank Limited (established in 1962 from the merger of Kleinwort Sons & Co and Robert Benson & Co) and its subsidiaries. It is registered in England at 30 Gresham Street, London, EC2V 7PG. Registration number 2056420. It is authorised and regulated by the Financial Services Authority and is a member of the London Stock Exchange. It operates throughout the UK from a principal office in London and branches in Birmingham, Edinburgh, Cambridge, Leeds Manchester, and Newbury.
Kleinwort Benson is also the brand name of Kleinwort Benson Channel Islands Holdings Limited and its subsidiaries. It is registered in Guernsey at
Dorey Court, Admiral Park, St Peter Port, Guernsey GY1 3BG
. Registration number
24786
. It operates in the Channel Islands through its principal subsidiaries which are regulated by the Jersey Financial Services Commission and the Guernsey Financial Services Commission.
Kleinwort Benson is a member of Commerzbank Group AG.
This information is issued by Kleinwort Benson for the information of the addressee only. Kleinwort Benson as issuer shall not be liable for any loss or damage arising as a result of failure to update information, transmission errors or communications breakdown. Past performance cannot be taken as a guide to future returns and, in particular, investors may not get back the amount originally invested. The references to tax are based on Kleinwort Benson’s understanding of the current law and UK Revenue and Custom treatment, which can change under future legislation.