Deutsche Bank: progress in the Postbank case

(CercleFinance.com) - Deutsche Bank announced on Wednesday evening that it had reached an agreement with most of Postbank's shareholders who felt that they should have been offered a better price when the German financial institution was acquired in 2010.


The German banking giant reports that this proposed out-of-court settlement concerns more than 80 plaintiffs, i.e. around 60% of the total number of disputes in the file.

The group points out that the settlement was accepted in particular by the main plaintiff, who alone represents a third of the complaints that had been filed.

The terms of the agreement provide for the payment of 31 euros per share, corresponding to just 45% of the provisions that Deutsche Bank had hitherto set aside for the litigation.

Deutsche Bank states that it therefore expects to record a pre-tax gain of around E430m in its Q3 financial statements.

The bank concludes that, should similar agreements be reached with other plaintiffs who consider themselves to have been wronged, this would imply a favourable change in the total expenses recorded to date in connection with the case.

Following this announcement, Deutsche Bank shares rose by 1.2% on Thursday morning on the Frankfurt Stock Exchange, one of the biggest winners on the benchmark DAX index.


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