Commerzbank fell as much as 5.3 percent to 1.367 euros, the biggest decline since Feb. 4. It dropped 3.2 percent to 1.398 euros at 5:16 p.m., valuing the company at 8.2 billion euros ($10.7 billion).
The bank hired UBS AG (UBSN) to help prepare the possible share sale, which could raise 700 million euros ($912 million) to 800 million euros, the magazine reported on its website citing people familiar with the matter who asked not to be identified.
Nils Happich, a spokesman for Commerzbank in Frankfurt, declined to comment on the report when contacted by telephone. A Frankfurt-based UBS spokeswoman declined to comment.
“Such a sale wouldn’t be good for the share price and wouldn’t be a smart move,” Ingo Frommen, an analyst with Landesbank Baden-Wuerttemberg in Stuttgart who recommends investors hold Commerzbank shares, said in a telephone interview. “The stock would be sold at less than its value and you’d have to be in an emergency to do so.”
Commerzbank’s price-to-book ratio, a measure investors use to calculate a company’s value, is 0.37, less than half of the average 0.82 for companies traded on the 46-member Stoxx 600 Banks Index.
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