November 28, 2008

The British government on Friday acquired a majority stake in one of the country's biggest banks and Germany's Commerzbank accelerated its takeover of a onetime rival as the shake-up of European banks gathered pace with help from taxpayers and shareholders.Britain's move was the latest attempt by countries around the world to shore up ailing banks amid a global credit crisis and give them a more solid footing for looming recession.Shareholders in Britain's Royal Bank of Scotland shunned its share offer, leaving the government to take a 58 percent stake for $23 billion.But Spain's Santander is expected to confirm later on Friday a strong take-up from shareholders for its 7.2 billion euro ($9.3 billion) rights issue, which will beef up its capital ratios.Commerzbank, which has taken 8.2 billion euros from the German government to prop up its flagging finances, cheered investors by saying its purchase price of Dresdner Bank would be 4.7 billion euros less than first envisaged in August and is speeding up the deal.Insurer Allianz, which is selling Dresdner and will get an 18 percent stake in the enlarged Commerzbank, said the takeover could go ahead six to nine months ahead of plan. ADVERTISEMENT In the current situation on the financial markets, an accelerated takeover of Dresdner by Commerzbank is to the advantage of all parties," said Allianz Chief Executive Michael Diekmann.