Commerzbank's purchase of German rival Dresdner Bank AG will cost thousands of jobs, but analysts said Monday it will benefit insurer Allianz SE, which agreed to sell Dresdner over the weekend in a 9.8 billion euros ($14.44 billion) deal. Shareholders appeared to agree, sending the Munich-based insurer's shares slightly higher in Frankfurt trading on Monday to 114.42 euros ($168.60), or up 0.28 percent. Commerzbank shares suffered because many analysts were concerned about the boldness of such a major purchase in a German economic environment where growth has contracted and business and consumer confidence are at multiyear lows. Shares of Commerzbank, Germany's second-biggest bank, slid more than 11 percent to 17.71 euros ($25.89). The deal comes with a heavy toll in terms of job cuts: 9,000 workers out of the combined banks' ranks of 67,000 workers will go, including back office, production and investment bankers. Of those cuts, 6,500 will take place in Germany with the other 2,500 abroad. But by holding on to some 30 percent of Dresdner Bank, Allianz will be able to continue selling its insurance products through the branches of the new bank, which will be Germany's biggest in terms of branches and customers.
