Deutsche Bank told to offer 25 euros for Postbank shares

, Comments 0 comments

Germany's financial markets watchdog BaFin told Deutsche Bank on Tuesday to offer 25 euros (32.75 dollars) per share for Postbank in its takeover bid.

"BaFin has informed Deutsche Bank ... that the valid three months average stock price calculated as of the record date of September 11 amounts to 25 euros," a Deutsche Bank statement said.

On September 13, the biggest German bank unveiled a public takeover offer for the outstanding shares Postbank, which has the nation's largest retail network, and was waiting for BaFin to establish the three-months average price.

Deutsche Bank already owns nearly 30 percent of Postbank and was bidding for a total of 30.6 percent more at a price of between 24 and 25 euros. Postbank shareholders had hoped for a premium on top of that.

Deutsche Bank is set to acquire the remaining shares from German logistics group Deutsche Post in several steps at an already agreed price of 45 euros per share.

The deal will see Deutsche Bank strengthen revenue from retail operations and balance its current focus on investment bank activities.

Deutsche Bank will itself issue 308.6 million new shares at a unit price of 33 euros in a record capital increase worth 10.2 billion euros to finance the Postbank purchase.

The subscription offer runs from September 22 to October 5 and the shares are to be listed in Frankfurt and New York from October 6.

Deutsche Bank shares showed a gain of 0.45 percent to 47.09 euros in Tuesday morning trade in Frankfurt while the DAX index of leading German stocks was 0.25 percent higher overall.

© 2010 AFP

0 Comments To This Article