Deutsche Bank goes for capital increase

by Richard Kilner

Story link: Deutsche Bank goes for capital increase

Deutsche Bank AG’s management board has decided, with the agreement of the supervisory board, to generate a capital increase of 2bn euros (gross).

The capital increase has the purpose of purchasing a 29.75% stake from Deutsche Post AG in Deutsche Postbank AG.

In addition, the capital increase will help ensure Deutsche Bank’s strong equity capitalisation situation continues after the purchase is made.

Some 40 million new registered shares are to be issued without par value from authorised capital without subscription rights.

The new shares will have full dividend entitlement in this fiscal year (2008).

No public offering will be made, instead they will be placed with institutional investors.