Roskilde Bank A/S was thriving between 2000-2006, as most of its business
relied on a loan portfolio based on mortgages. Now, with the real
estate industry cooling off worldwide and borrowers having trouble
paying back their mortgages, Roskilde's profits have stopped and the
bank was forced to find a buyer.
In a statement late Sunday, Aug. 24, the central bank said the takeover "follows the fact that no offers--domestic or foreign--were received after a thorough sales process on either all or parts of Roskilde Bank."
Under the agreement, the central bank and the so-called Private Contingency Association for the Winding Up of Ailing Banks, Savings Banks and Cooperative Institutions will pump Dkr 4.5 billion worth of capital into Roskilde, which will retain its name. Søren Kaare-Andersen will stay on as CEO, while managing director Arne Wilhelmsen said he plans to retire. - Renee Cordes
See TheDeal.com: Danish Central Bank buys Roskilde (subscription required)
