DUESSELDORF, Germany, Aug 22 (Reuters) - HSBC plansto expand its business with midsize German companies, includingthrough acquisitions, the bank's Germany chief Andreas Schmitzsaid on Thursday.
The British lender will add more staff and products and iswilling to take on more risk to ramp up lending to so-calledMittelstand companies, which form the backbone of the Germaneconomy, Schmitz said at a press conference.
Parent company HSBC is willing to inject capital to helpbuild the business, although a capital increase for the Germanunit HSBC Trinkaus is not necessary for now, Schmitz said.
Duesseldorf-based HSBC Trinkaus would consider buying thecorporate banking business of cross-town rival IKB ifit was ever put up for sale, Schmitz said, adding "it's worth acloser look".
Schmitz clarified that HSBC did not want to bid for thewhole of IKB, but was always on the lookout for opportunities towin more corporate banking business in Europe's largest economy.
IKB became a high-profile casualty of the credit crisis andrequired several bailouts after its off-balance sheet investmentvehicles ran into funding problems in 2007.
Following the rescues, IKB was taken over bystate-controlled bank KfW, which in turn sold IKB toU.S. private equity investor Lone Star in 2008 for 137million euros, a deal that included 9.5 billion euros instate-backed guarantees.
After restructuring the lender, Lone Star actively soughtbuyers, with the aim of striking a deal by the first quarter of2011.
IKB's owner has been in talks with French bank BNP Paribas about a sale, but the parties failed to strike a dealabout who should take on the long-term liabilities.
Lone Star declined to comment on Thursday.
HSBC Holdings (HSBA)