Hedge funds are positioned to profit from the forthcoming sale of Landesbank Berlin regardless of who buys the bank, according to people involved in the auction.
Their actions could also reduce the amount of cash that the city of Berlin receives from selling its 81 per cent stake in the bank.
The sale is being closely watched in the financial sector because Landesbank Berlin owns Berliner Sparkasse and therefore represents the first real opportunity for private banks to enter thepreviously protected public savings bank sector.
International investors including hedge funds have bought up much of the 7 per cent stake in the bank that is listed on the Berlin stock exchange in the expecta-tion that the eventual winner of the auction will have to buy them out at a higher price.
