possible reasons behind the greenmail.....

the Afr quoted to day that German bank West LB was behind the breakdown of negotiations - their exposure is $186m (out of $7bn) - with the suggestion that one of the bigger boys - eg ANZ would be expected to "take them out" - a classic greenmail tactic.

Going to Bank LB's web-site the possible reasons become clearer (this taken from the english version (dated 2.4.08) of their web-site) - they have their own problems (hence probably why they want out):


* Capital markets´ crisis negatively impacts the balance sheet and profit and loss account by € 2,011 million
* Despite losses, notable successes in the customer business
* Group profit before income tax falls to € -1,502 million



http://www.westlb.de/cms/sitecontent/westlb/ui/en/news/newscontainer/news_2008/PR_20080402.standard.gid-N2FkNDZmMzU4OWFmYTIyMWM3N2Q2N2Q0YmU1NmI0OGU_.html