Deutsche Bank (NYSE:DB) falls 3.8% in premarket trading after the Financial Times reports that the bank is considering raising as much as €10B in new equity as part of a potential merger with Commerzbank (OTCPK:CRZBF), a move that’s intended to ensure that Germany’s largest lender has sufficient capital.
Management has been looking at a plan to raise from €3B to €10B , with the government wanting to raise as much as possible so the combined bank wouldn’t have to return to the market again and managers angling for the lower end of the range to appease shareholders.
A capital raise at the upper end of the range would equal about 40% of the two German banks’ combined market cap.
Related ticker: OTCPK:CRZBY
Previously: Deutsche staff barred from selling stock during merger (March 25)
Source: M A News on Seeking Alpha