Deutsche Bank in informal talks about raising capital - Bloomberg

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Reuters
Last Updated : Oct 07 2016 | 4:48 AM IST

(Reuters) - Deutsche Bank AG is in informal talks with securities firms to explore options including raising capital should mounting legal bills require it, Bloomberg reported on Thursday.

Senior advisers at top Wall Street firms are speaking to representatives of Deutsche Bank about ideas including a share sale and asset disposals, Bloomberg reported, citing people familiar with the discussions. (http://bloom.bg/2dyvmuW)

The banks are offering to help underwrite a stock sale to raise about 5 billion euros ($5.6 billion), the maximum amount in discounted shares Deutsche Bank can sell without needing shareholder approval, Bloomberg said.

A spokeswoman for Deutsche Bank in New York declined to comment.

Bloomberg said Deutsche Bank could also go to shareholders to request approval for more funds.

The German lender is deliberating whether to sell the shares once it reaches a settlement with the U.S. Department of Justice on a probe tied to residential mortgage-backed securities, Bloomberg said.

No final decisions have been made and the bank could decide against a capital increase, Bloomberg reported.

Deutsche is fighting a fine of up to $14 billion from the U.S. Department of Justice.

The chief executives of several German blue-chip companies have discussed Deutsche Bank's problems and are ready to offer a capital injection if needed to shore up Germany's largest lender, German newspaper Handelsblatt reported earlier on Thursday, citing sources.

(Reporting by Ismail Shakil in Bengaluru; Editing by Grant McCool and Lisa Shumaker)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Oct 07 2016 | 4:40 AM IST

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