Deutsche Bank to run sale of Hypo Alpe assets

VIENNA - Reuters

Austria’s Hypo, which fell into state hands in 2009, is aiming to revamp itself by shrinking.

Nationalized Austrian lender Hypo Alpe Adria has launched the sale of its southeastern Europe banking network by picking Deutsche Bank to run a deal it hopes will raise at least 1.5 billion euros ($1.9 billion).

Hypo Alpe Adria Chief Executive Gottwald Kranebitter said Deutsche would begin the process by sounding out the market, which he acknowledged was a tough one, with the goal of being able to act quickly should deep-freeze conditions thaw out after banks hit mid-2012 capital targets.

The exact timeline for a sale remains unclear, but Hypo hopes by the end of this year to know at least “who can, may and wants to” bid for the network. Kranebitter said banks in Europe, Russia, Turkey and southeast Asia could be interested as well as financial investors.