Deutsche Bank’s Qatari shareholders have an informal agreement with sovereign wealth funds in Qatar and Abu Dhabi, as well as an unidentified Chinese investor, to participate in a capital increase by the lender should it need to raise funds, Manager Magazin reported, without citing anyone.
The group would be willing to take a combined stake of as much as 25%, the magazine reported yesterday. The holding would give the investors a bigger say in how the company is run, including potential changes to management, the monthly magazine said. A spokesman for Deutsche Bank declined to comment when contacted by Bloomberg.
Deutsche Bank CEO John Cryan, 55, has been under pressure to stem a slide in shares that has eroded about 43% of company’s market value this year, compounded by concerns about mounting litigation costs. While the CEO last month reassured investors that he doesn’t plan to raise capital after the US Department of Justice requested $14bn to settle a probe into faulty securities, the bank has held informal talks with securities firms to explore options including raising capital, people with knowledge of the discussions told Bloomberg earlier this month.
The Qatari investors are considering increasing its stake in Deutsche Bank to as much as 25%, Der Spiegel reported earlier this month.
Related Story