Deutsche Bank shares slide 4 percent on report of capital raising for merger with Commerzbank

0
38


Shares of Deutsche Bank and Commerzbank slipped after a report in the Financial Times stated that the former is in talks to raise as much as 10 billion euros ($11.2 billion) in fresh equity to support their potential merger.

The report published Thursday, citing people familiar with the talks, said executives from Deutsche Bank have been looking at a plan to raise equity of between 3 billion euros and 10 billion euros.

Shares of Deutsche Bank slipped nearly 4 percent, while Commerzbank slipped more than 2 percent. According to the FT, the capital increase is expected to equal 40 percent of the two German lenders’ combined market capitalization.

“Much too early at this stage of the due diligence process to make a credible assessment if there is any potential capital need at all,” Deutsche Bank told the FT. A spokesperson was not immediately available when contacted by CNBC.

LEAVE A REPLY

Please enter your comment!
Please enter your name here