Frankfurt  - German state bank KfW said Thursday that it had sold its stake in the ailing business bank IKB to the US private equity group Lone Star.

Dallas-based Lone Start is to acquire a 90.8 per cent stake in IKB, which has emerged as one of Germany's most prominent casualties of the US subprime mortgage market crisis.

KfW was forced last year to throw IKB a 10 billion euros (14.8 billion dollars) financial lifeline as the global credit crunch triggered by US mortgage industry upheaval took shape. (dpa)