Board members at FAG Kugelfischer Georg Schafer AG are accusing Dresdner Bank of abusing its relationship with FAG and passing on critical information to INA Holding Schaeffler KG in its hostile takeover bid for FAG.

Dresdner Bank had relationships with both INA and FAG prior to INA announcing its 11 Euro per share takeover bid for FAG. Dresdner had been FAG's long-term "house bank" until approximately a week after INA's takeover bid became public. Then, Dresdner abruptly severed its relationship with FAG and joined a consortium of banks, headed by the powerful Deutsche Bank, supporting the INA takeover.

Specifically mentioned is Heinrich Linz, a Dresdner Bank head who sat on FAG's board until the just over a week ago, the day Dresdner announced it was terminating its relationship with FAG.

Linz is facing accusations that he used his insider knowledge to help INA in formulating its takeover strategy and pass on information about FAG's response.

The situation with Dresdner Bank is critical, not just on legal grounds, but also because 33% of FAG's outstanding shares are held by Dresdner Bank clients.

FAG's supervisory board chairman, Kajo Neukirchen, is also now under additional scrutiny because he is considered, "a Deutsche Bank man."