Deutsche Banks says 10.2-bln euro capital increase a success

6th October 2010, Comments 0 comments

The biggest German bank, Deutsche Bank, said on Wednesday it had successfully managed its biggest capital increase ever, raising 10.2 billion euros (14.1 billion dollars).

Deutsche Bank issued a total of 308.6 million new shares at 33 euros per share, a statement said.

The operation was aimed at funding Deutsche Bank's takeover of German bank Postbank and bolstering Deutsche Bank's capital position to meet increased requirements proposed by the Basel Committee on Banking Supervision.

"The successful capital increase is an impressive demonstration of confidence in the future perspectives of Deutsche Bank," the statement quoted bank chairman Josef Ackermann as saying.

Deutsche Bank already owns nearly 30 percent of Postbank, which has Germany's biggest retail bank network, and is looking to add an attractive source of earnings next to Deutsche Bank's investment bank activities.

Shares in Deutsche Bank gained 1.99 percent to 41.35 euros in midday trading on the Frankfurt stock exchange, while the DAX index of German blue-chips was 0.86 percent higher overall.

© 2010 AFP

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