Deutsche Bank Plans to Raise at Least $12.4 Billion, Bids to Buy Postbank
Sept. 13 (Bloomberg) — Deutsche Bank AG, Germany’s largest bank, plans to raise at least 9.8 billion euros ($12.5 billion) in its biggest-ever share sale to take over Deutsche Postbank AG and meet stricter capital rules.
Deutsche Bank expects to offer
between 24 euros and 25 euros a share in cash to Postbank stockholders
to increase its 29.95 percent stake in the lender, the Frankfurt-based
bank said yesterday. The company intends to book a charge of about 2.4
billion euros in the third quarter as it marks down the value of its
existing Postbank holding.
Chief Executive Officer Josef Ackermann
is planning the biggest rights offer in Europe this year as he seeks to
reduce Deutsche Bank’s dependence on investment banking by gaining
control of Postbank, a consumer lender based in Bonn. The capital
increase will also help Deutsche Bank meet new rules from global
regulators that more than doubled banks’ capital ratios.
“Deutsche Bank is doing it all at once — bidding for Postbank and topping off its coffers,” said Peter Thorne,
a London-based analyst at Helvea Ltd. who is reviewing his rating on
the stock. “This will help them move into line with their international
peers in terms of capital.”
Subscribers should recall that I went over this in some detail in the
beginning of the year. I consider Postbank to be insolvent. See the
following subscriber downloads:
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Deutsche Bank vs Postbank Review & Summary Analysis – Pro & Institutional - Deutsche Bank vs Postbank Review & Summary Analysis – Retail
For those who do not subscribe, here is the first page of that professional document release in May of this year:
Consolodate then die.
So DB needs to buy another bank to meet new capital ratios?
Reggie puts Fraud Street Analysts to shame. You fuck with this guys models. One of the few truth tellers left.
The postbank takeover is a fig-leaf for capital raising but also - as a vehicle for more stealth transfers of German taxpayer money to bolster Deutsche's reserves.
The German government is singing from the same hymnsheet as the US and UK Governments when it comes to bailing out bankrupt banks.
too true, the bankers do really run the govts, they have us held hostage, and they are insolvent....does not bode well for any economy
Roughly 2 years ago I did this calculation: take DB's balance sheet. Deduct goodwill, deferred tax asset and other intangibles from common equity. Calculate the ratio of assets to capital. It was something like 150x.
Another foray into Ohio to go toe to toe with Fed Ex and UPS? Is that your laughter I hear again Reggie? Ya know you better watch yourself because you may be too good of a man for this world Mr. Middleton. Great post. Love it.