Deutsche Bank Plans $11.5 Billion Share Sale
by
Sep 10th 2010 8:12AM
Updated Sep 10th 2010 8:23AM
Deutsche Bank (DB), Germany's largest lender, is to announce a share sale worth as much as 9 billion euros ($11.5 billion) as it prepares for tighter regulations and aims to purchase a larger stake in Postbank.
The plan may be announced early next week, The New York Times reported without naming its sources. Also next week, the Basel Committee on Banking Supervision may decide that banks should hold bigger capital reserves.
Deutsche had previously said that any share issue would be used to fund a major acquisition.
Deutsche currently owns 29.9% of Postbank, a lender with a market capitalization of 5.9 billion euros. Deutsche also owns options on a further 12.1% of Postbank, and entered into a bond deal that obligates it to buy a further 27.4% of Postbank's shares in 2012.
The plan may be announced early next week, The New York Times reported without naming its sources. Also next week, the Basel Committee on Banking Supervision may decide that banks should hold bigger capital reserves.
Deutsche currently owns 29.9% of Postbank, a lender with a market capitalization of 5.9 billion euros. Deutsche also owns options on a further 12.1% of Postbank, and entered into a bond deal that obligates it to buy a further 27.4% of Postbank's shares in 2012.
