Court Orders Deutsche Bank to Compensate Postbank Shareholders

The Cologne Higher Regional Court ruled that Deutsche Bank underpaid in its 2010 acquisition of Postbank, requiring additional payments to minority shareholders.

• The court decision mandates Deutsche Bank to pay 13 Postbank minority shareholders the difference between the 2010 offer of €25 per share and the higher market value of €57.25 per share.
• The ruling is based on the argument that Deutsche Bank should have made an acquisition offer in 2008 when it gained control of Postbank.
• Deutsche Bank had set aside €1.3 billion in anticipation of this ruling, with €440 million already released following settlements with 70% of the claimants.
• The bank has resolved claims with major plaintiffs, including Effecten-Spiegel and hedge fund Elliott, through settlements that covered 62% of the total claims.
• While the court did not allow an appeal, Deutsche Bank is considering a non-admission complaint to the Federal Court of Justice.

4 Articles

Kölner Stadt-Anzeiger Frankfurter Allgemeine Zeitung Der Tagesspiegel Stern