Deutsche Bank strikes deal with Postbank ex-shareholders
Add BT as a preferred source
DEUTSCHE Bank said on Wednesday it had settled a dispute with dozens of former shareholders of Postbank who began litigation alleging the German banking giant’s 2010 takeover shortchanged them.
Deutsche Bank said it reached agreements with “more than 80 plaintiffs representing almost 60 per cent of the total claims in the litigation” based on a proposal of 31 euros (S$44) per share.
Among the plaintiffs who agreed to settle was the largest single individual who represented “around one-third of all the claims”, the bank said in a statement.
The deal will cost 45 per cent of the 1.3 billion euros set aside for the litigation in April, with the bank estimating the positive impact on its third-quarter operating profit at 430 million euros.
The former shareholders launched their complaint saying Deutsche Bank’s takeover of Postbank undervalued their shares when they were bought at 25 euros each.
A Cologne tribunal indicated in April that some of the claims could be vindicated, leading Deutsche Bank to intensify discussions with the former Postbank shareholders.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
The litigation provision dragged Deutsche Bank to its first quarterly loss in four years in the second quarter of 2024. AFP
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
Singapore developer in limbo after Timor-Leste scraps major township project
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
MAS to remove mandatory financial advice for complex products for most retail investors
That ‘cheap’ Malaysia condo could cost Singapore buyers far more than they think
