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This authorized capital serves as protection against dilution for the holders of conversion or subscription rights. At the end of the year under review, there was a further ¤ 5,369,188 (2,097,339 shares) of Authorized Unissued Capital 2001/II which can be issued up to July 10, 2006. The pre-emptive rights of shareholders can be excluded in order to offer the new shares to employees of Allianz AG or its Group companies. 

The company had conditionally authorized capital 2001 amount- ing to ¤ 50,000,000 (19,531,250 shares) on which bonds with sub- scription or conversion rights, with pre-emptive rights for company shares, can be issued up to July 10, 2006. 

The capital reserve includes the premium received on the is- suance of shares. 

## Treasury stock 

In connection with an exchange offer to the holders of participation certificates, a total of 6,148,110 treasury shares were exchanged for participation certificates of Allianz AG as of January 16, 2003. 

The Annual General Meetings on April 29, 2003 authorized Allianz AG to acquire own shares for miscellaneous purposes pur- suant to clause § 71 (1) no. 8 of the Corporation Law (Aktiengesetz). The authorization was used to acquire 293,686 shares. 

In order to enable Dresdner Bank AG to trade in shares of Allianz AG following the takeover of the bank, the Annual General Meeting on April 29, 2003 authorized the banks in which Allianz AG has a ma- jority holding to acquire treasury stock for purposes of securities trad- ing pursuant to § 71 (1) no. 7 of the Corporation Law (Aktiengesetz). In accordance with this authorization, the banks in the Group pur- chased 32,891,597 of the company’s own shares in the course of 2003. An average price of ¤ 76.67 per share is calculated, including the initial inventory. 32,339,227 shares were disposed of in the course of 2003 at an average price of ¤ 77.74 per share. 

The gains from these transactions in the amount of ¤ 7 mn were allocated to revenue reserves. 

At year-end, treasury stock is comprised as follows: 

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