Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
 | 
Last updated 12 minutes ago
Printer Friendly Version | TGT@Twitter | RSS Feed |
HOME LOCAL MIDEAST ASIA WORLD BUSINESS SPORT OPINION WRITERS
Deutsche Bank faces new 740-million euros claim
January 04, 2018
 Print    Send to Friend

Frankfurt: Investors are suing Germany’s biggest lender Deutsche Bank for 740 million euros, alleging they were underpaid for shares in subsidiary Postbank, local media reported Wednesday.

At the heart of the suit is the question of when Deutsche took control of Postbank from its previous owner, logistics firm Deutsche Post.

The investors argue that Deutsche Bank was already in de facto control of Postbank two years before it launched a full takeover of the bank.

“Deutsche Bank intervened significantly in Postbank’s business and took over control” as early as 2008, two years before it bought out the plaintiffs’ shares, their Munich-based lawyer Oliver Krauss told business weekly WirtschaftsWoche.

The shareholders say they should therefore have been paid the value of their stock as it stood in September 2008 − around 64 euros per share − when Deutsche controlled just 30 per cent of Postbank, rather than the 25 euros they received in the full takeover two years later.

Some 31 German and international investors are involved in the suit with claims totalling around 740 million euros.

According to court documents seen by WirtschaftsWoche, the plaintiffs accuse Deutsche Bank of striking “numerous contracts and agreements, some of them secret” with Postbank’s former owner Deutsche Post in 2008.

They allegedly included giving up risky financial market activities in favour of retail banking, details of a capital increase at Postbank, personnel changes in the executive and supervisory boards, and the decision not to pay out a dividend in 2008.

Meanwhile, Deutsche Post put its Postbank shares at Deutsche Bank’s disposal for trading and agreed to use its voting rights to back the financial titan’s plans for the subsidiary.

Such agreements helped both sides weather the years after the financial crisis, the plaintiffs argue, saving Deutsche Post from losing money on its investment and offering more flexibility to Deutsche Bank as it battled to right itself.

“We believe the claims made in the suit are unfounded,” a Deutsche Bank spokesman told AFP.

Agencies

Add this page to your favorite Social Bookmarking websites
Comments
 
Post a comment
 
Name:
Country:
City:
Email:
Comment:
 
    
    
Related Stories
German CB slashes economic growth forecast for 2018
Frankfurt: Germany’s central bank said on Friday it had sharply downgraded its economic growth forecast for this year but grew more optimistic for 2019, saying the presen..
Deutsche Bank may cut 10,000 jobs
FRANKFURT: Deutsche Bank is planning to cut 10,000 jobs, or about a tenth of its global workforce, as part of efforts to reduce costs, The Wall Street Journal reported on..
Germany clears Dhs226m Expo 2020 investment
DUBAI: Germany, Europe’s largest economy and one of the world’s leading supporters of renewable energy, on Wednesday sealed its 50 million euro, (Dhs226 million), investm..
German industrial sector getting back on track
BERLIN: Foreign demand helped German industrial orders rebound in May, albeit less than forecast, data showed on Thursday, and the Economy Ministry said it expected this ..
Airbus agrees to sell 140 planes to China
BERLIN: Airbus has signed an agreement to sell 140 aircraft to China, it said on Wednesday, in a deal worth almost $23 billion at list prices. The agreement, signed durin..
FRONTPAGE
 
GALLERY
 
PANORAMA
 
TIME OUT
 
SPORT
 
 
Advertise | Copyright