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GERMAN COURT RULES AGAINST DEUTSCHE BANK IN POSTBANK ACQUISITION LAWSUIT

BY RUXANDRA IORDACHE,CNBC • PUBLISHED 4 HOURS AGO • UPDATED 3 HOURS AGO



Mike Kemp | In Pictures | Getty Images

Deutsche Bank offices in the City of London on July 2, 2024, in London, U.K. 

 * Deutsche Bank said it will now analyze the judgement and noted it has booked
   provisions covering all outstanding claims by the plaintiffs, including
   interest accrued to date.
 * The 13 plaintiffs in the case claimed that Postbank, which Deutsche Bank
   acquired over several interest purchases from Deutsche Post, was worth more
   than the 25 euros ($27) per share paid in 2010.

Cologne's higher regional court on Wednesday ruled against Deutsche Bank in a
long-standing legal dispute with shareholders who alleged the lender underpaid
in its multi-stage acquisition of German retail bank Postbank.

📺 Los Angeles news 24/7: Watch NBC4 free wherever you are

The 13 plaintiffs in the case claimed that Postbank, which Deutsche Bank
acquired over several interest purchases from Deutsche Post, was worth more than
the 25 euros ($27) per share paid in 2010.

The investors, 13 plaintiffs who are former shareholders of Deutsche Postbank
(Postbank), instead held they were entitled to a significantly higher payment of
57.25 euro per share — the price at which Deutsche Bank bought its initial 30%
stake in Postbank, mere days before the collapse of Lehman Brothers and the
kickoff of the global financial crisis, which waylaid the takeover.

> Get top local stories in Southern California delivered to you every morning.
> Sign up for NBC LA's News Headlines newsletter.

Deutsche Bank and Postbank finally merged in 2018.

Legal suits linked to the transaction have cast a long shadow over the financial
prospects of Deutsche Bank, dampening its performance as recently as in the
second quarter — when the lender ended its 15-quarter profit streak and booked a
loss of 143 million euros on the back of a 1.3-billion-euros provision linked to
the Postbank proceeding.

Deutsche Bank later reached settlements with nearly 60% of plaintiffs in the
case in August.


MONEY REPORT



news 19 mins ago


EUROPEAN CENTRAL BANK POLICYMAKERS SPLIT ON THE NEED FOR JUMBO RATE CUTS AS
GROWTH CONCERNS TAKE OVER

news 40 mins ago


INSIDE THE FALL OF 23ANDME

Earlier in the Wednesday session, the lender reported the release of 440 million
euros of litigation provisions in the third quarter, which helped it swing back
to a better-than-expected net profit attributable to shareholders of 1.46
billion euros ($1.58 billion) over the period.

Deutsche Bank said it will now analyze the Wednesday judgement and noted it has
booked provisions covering all outstanding claims by the plaintiffs, including
interest accrued to date.

"The Court has not allowed a further appeal to the German Federal Court.
Deutsche Bank will assess if to file a non-admission complaint (motion for leave
to appeal) after receiving the written reasoning for the decision," a Deutsche
Bank spokesperson said.

The lender's shares were down 2.3% at 10:58 a.m. London time.

— CNBC's Sophie Kiderlin contributed to this report.


ALSO ON CNBC

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 * Russia says it has no intention of abandoning Iran as it faces Israel's wrath
 * Deutsche Bank shares shed 3% as lender's swing back to profit fails to
   impress

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