Landesbank Berlin, the German bank being sold by the city of Berlin, is in favour of an initial public offering over an outright sale, according to bankers.

UBS analysts say a public offering of the bank could yield up to €8bn ($5.9bn), while a buyout would only raise between €4.7bn and €6bn. Banking sources said: "A float is by far the most viable option for Berlin, which, as the mayor said last year, is ‘sexy but poor', and will just do whatever fetches the best price."