Report: Flowers Mulls WestLB Bid

J.C. Flowers has added its name to the list of potential bidders for ailing German state-controlled regional bank WestLB, The Times of London reported without naming sources.

German Regional banks Landesbank Baden-Wuerttemberg and BayernLB are also in the running for WestLB, according to recent media reports.

In August, WestLB announced first-half results with losses of more than EUR 600m in proprietary trading due to bad bets on the spread between preferred and ordinary shares in some German companies. The bank therefore recorded a pre-tax loss of EUR 38m in the first half of the year.

The poor performance shifted has led to executive dismissals and shifted power to German central bank LBBW in the race for Landesbank consolidation marked by the acquisition of Sachsen LB.

Last month WestLB agreed to sell its shareholding in HSH Nordbank to institutional investors advised by JC Flowers, which is run by former Goldman Sachs banker Christopher Flowers.