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The big three Frankfurt banks, Deutsche Bank AG, Dresdner Bank AG and Commerzbank AG announced Tuesday that the long expected merger of their respective mortgage banks, Eurohypo AG, Deutsche Hyp AG and Rheinhyp AG, would be completed by mid-2003. Deutsche Bank and Commerzbank will own 35% each of the combined company that would be merged into Eurohypo, while Dresdner will hold 30%. Commerzbank and Dresdner will inject Euro 500 million and Euro 280 million ($449 million and $252 million), respectively. A Commerzbank spokesman explained that the division is based on a valuation that includes the three mortgage banks' combined free float of a little under 2.5%. The size of the float may be increased once the new integrated bank is up and running. Dresdner and Commerzbank were advised by the Boston Consulting Group. Deutsche bank did not use an outside adviser. -- Jonathan Braude www.TheDeal.com