Wells Fargo/Lone Star close in on Eurohypo’s UK business

A sale of Eurohypo’s UK operation came closer last week when parent Commerzbank started exclusive talks with Wells Fargo and Lone Star.

Other interested bidders for the £4bn, mainly performing UK loan book were told they had not been successful, according to the Financial Times.

PIMCO and Starwood, Apollo Global Investors and Blackstone had also made bids.

Wells Fargo is interested in the performing loan book, which could be the basis of a new lending business in Europe.

Most of the staff have stayed on at Eurohypo, which was last year renamed Hypothekenbank Frankfurt.

Lone Star would take on the sub, or non-performing, loans at a mooted 25% discount to par.

A sale would be the largest sale of a UK loan book since the onset of the financial crisis.