October 8, 2010
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Deutsche Bank has published the terms of its bid to take over the whole of retail bank Postbank. Germany’s largest bank plans to fund the acquisition with the 10.2bn-euro (£8.9bn, $14bn) capital increase it successfully completed on Wednesday.
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Deutsche Bank currently owns a 30% stake in Postbank and wants to take full control by buying the remaining shares.Postbank’s shareholders have until 4 November to sell at 25 euros a share.Deutsche Bank said the takeover was aimed at “expanding its strong domestic position”, particularly in retail operations.
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On Wednesday, the bank announced that it had successfully increased its capital by selling 308.6 million new shares at 33 euros a share, in the biggest such move in its history.This raised its market capitalisation from 25.7bn euros to more than 38bn euros at current share prices, the bank said in a statement.
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Minimum price
Deutsche Bank had been intending to take control of Postbank in 2008, but the move was delayed by the global financial crisis.
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Deutsche Bank agreed in 2009 to buy a further 27.4% in 2012 from Postbank’s main shareholder, Deutsche Post, for 45 euros per share.Many of Postbank’s minority shareholders were disappointed by the 25 euro-per-share offer price, the legally required minimum.
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According to German media reports, an association of small shareholders is planning to take legal action in an effort to obtain a better offer.Deutsche Bank is Germany’s largest bank, but has a greater presence in investment banking than in the retail market. Postbank is Germany’s largest retail bank, with 24 million clients.
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Source:BBC