Deutsche Bank to Raise $13.3 Billion in Share Sale

Deutsche Bank AG, Germany’s largest bank, will raise about 10.2 billion euros ($13.3 billion) in Europe’s biggest rights offer this year to acquire Deutsche Postbank AG and increase reserves.

The bank plans to sell 308.6 million new shares for 33 euros apiece in Germany and the U.S., the company said in a statement yesterday. That’s 30 percent less than yesterday’s closing price in Frankfurt. Shareholders will be able to purchase one new share for every two they own.

Chief Executive Officer Josef Ackermann is planning the company’s biggest-ever share sale to finance a takeover offer for Postbank, which would boost the firm’s retail clients to 24 million in Germany. The funds will also help Deutsche Bank fulfill new regulatory requirements by the end of 2013, Ackermann said last week.

“Deutsche Bank intends to secure the equity capital required for a planned consolidation of Postbank,” Ackermann, 62, said in a statement yesterday. “With this capital increase we are strengthening the bank’s equity capital in light of expected regulatory changes and business growth.”

Deutsche Bank rose 17 cents, or 0.4 percent, to 47.05 euros by 9:36 a.m. in Frankfurt trading. The stock has declined 4.8 percent this year, valuing the company at 29.2 billion euros. Postbank gained 0.8 percent to 25.10 euros, giving the company a market value of 5.5 billion euros.

Postbank Offer

Deutsche Bank said on Sept. 12 that it would raise at least 9.8 billion euros, at a preliminary subscription price of 31.80 euros. The company plans to publish a prospectus today.

Deutsche Bank said at the time the offer is fully underwritten by a group of banks including UBS AG, Banco Santander SA, Bank of America Merrill Lynch, Commerzbank AG, HSBC Trinkaus & Burkhardt AG, ING Groep NV, Morgan Stanley and Societe Generale SA.

The German bank plans to offer 25 euros a share in cash to Postbank investors to increase its 29.95 percent stake. Deutsche Bank will likely boost its stake in Postbank to about 60 percent if minority shareholders accept the offer.

The German firm agreed to buy a stake in Postbank in September 2008 from Deutsche Post AG and then renegotiated the transaction in January 2009 after the collapse of Lehman Brothers Holdings Inc. roiled financial markets. Deutsche Bank also holds a mandatory exchangeable bond for a 27.4 percent stake and an option to buy Deutsche Post’s remaining 12.1 percent stake.

To contact the reporters on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.