German Bank Receives Four Bids

FRANKFURT, May 28 (Reuters) – Four bidders remain in the running to buy subprime-stricken German lender IKB (IKBG.DE: Quote, Profile, Research) as the sale moves into its final stages, several sources familiar with the situation told Reuters on Wednesday.

Besides financial investors Lone Star [LS.UL] and Ripplewood, Swedish bank SEB (SEBa.ST: Quote, Profile, Research) and an investor group have also firmed up their offers, the sources said.

German state development bank KfW [KFW.UL] is due to draw up a short list on Thursday in the sale of its 45 percent stake in the lender, which ran into trouble when its investments linked to the subprime mortgage crisis in the United States turned sour.

Finance investor Texas Pacific Group (TPG) is not among the bidders, the sources said.

A number of potential bidders have dropped out of the sale in recent weeks, sources have said, including state bank BayernLB [BAYB.LB] and financial investor JC Flowers.

KfW declined to comment on the number and names of the bidders.

(Reporting by Philipp Halstrick and Patricia Nann)