Allianz's plan to form Germany's first bancassurance group via a friendly takeover of partner Dresdner Bank got a muted reception today as investors waited for details.
The move was reported shortly before the market closed but has not been confirmed by either party.
It would mean a dramatic shake-up in the German financial sector and increase pressure on Deutsche Bank to make a similar deal with French insurer AXA.
Allianz shares fell over 2 per cent to euro 302.75, extending yesterday's losses, while Dresdner stock was down 1.56 per cent, trimming gains of over 7 per cent the previous session.
The merger of Dresdner, Germany's third-largest bank, with Allianz, Europe's largest insurer, would create one of Europe's largest financial groups with a combined market value of euro 107 billion, based on yesterday's closing prices.
