Deutsche Bank Said to Weigh Share Sale of Up to EU9 Billion

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ASusilovic

Sept. 9 (Bloomberg) -- Deutsche Bank AG has approached investment banks to assess their interest in managing a stock sale to raise as much as 9 billion euros ($11.4 billion), said three people with knowledge of the discussions.

Germany’s biggest bank has yet to decide on the sale, said the people, who declined to be identified because the plans are confidential. The proceeds may be used to increase the bank’s stake in Deutsche Postbank AG and to meet rising regulatory capital requirements, the people said.

Deutsche Bank has the option to increase its almost 30 percent stake in Bonn-based Postbank, which currently has a market value of 5.6 billion euros. Deutsche Bank Chief Risk Officer Hugo Banziger said in an investor presentation in June that the Frankfurt-based bank would only raise capital for acquisitions.

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Peanuts.
 
Sept. 10 (Bloomberg) -- Deutsche Bank AG, Germany’s biggest bank, is close to lining up securities firms to underwrite a rights offer of about 9 billion euros ($11.5 billion), three people with knowledge of the talks said.

The price, final amount and banks arranging the sale are likely to be determined by Sept. 13, said the people, who declined to be identified because the matter is confidential. The shares may be offered to existing investors for 20 percent to 25 percent below the so-called ex-rights price, which excludes the value of the option to buy new stock, they said.

Deutsche Bank may offer underwriters a fee of about 2 percent of the amount of the sale, along with a 0.25 percent performance bonus, the people said.

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Deutsche Bank on Sunday announced a €9.8bn rights issue, as Germany’s biggest bank moves to strengthen its capital base.

The issue, bigger than the €8bn-€9bn suggested late last week by people close to the deal, comes as regulators gathering in Basel, Switzerland, were putting the finishing touches to a deal to toughen the capital requirements for banks around the world.

Deutsche also issued a tender offer of €24-€25 a share for the shares in Postbank that it does not already own, though that was below the €27.04 price that the post office bank shares closed at on Friday. Deutsche currently owns just under 30 per cent of Postbank.

Deutsche Bank said in a statement: “The capital increase is primarily intended to cover capital consumption from the planned Postbank consolidation, but will also support the existing capital base to accommodate regulatory changes and business growth. “

http://www.ft.com/cms/s/0/86ac95f8-bd04-11df-954b-00144feab49a.html


Deutsche Bank said the offer is fully underwritten by a group of banks including UBS AG, Banco Santander SA and Bank of America Corp. at a preliminary subscription price of 31.80 euros a share. The bank plans to publish a prospectus on the sale Sept. 21.

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