Exclusive: Deutsche Bank cap hike delay due to court bottleneck - sources

Wed Jun 4, 2014 9:01pm EDT
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By Arno Schuetze and Thomas Atkins

FRANKFURT (Reuters) - Deutsche Bank's (DBKGn.DE: Quote) plans for an 8 billion euro ($11 billion) capital hike came to an abrupt halt on Wednesday when a procedural bottleneck in a German court forced Germany's flagship lender to delay the issue by several days.

The bank's biggest investor, Sheikh Hamad Bin Jassim Bin Jabor Al-Thani of Qatar, has made his first contribution to the capital hike, paying 1.75 billion euros for 60 million shares, but a Frankfurt court has taken longer than expected to enter the purchase into the shareholder registry, three market sources told Reuters.

Until that paper jam is cleared, the second part of the capital hike plan - a 6.3 billion euros rights issue - cannot proceed, putting the whole 8 billion euro exercise on hold but not threatening it in any way, the sources said.

The delay comes as an embarrassing glitch in Deutsche Bank's second capital hike in as many years, designed to strengthen its capital base and to see the bank through a costly restructuring. Deutsche originally intended to price the rights on Wednesday.

"This is not nice but it won't put the rights issue at risk," said one source.

"It's a technical issue. It has nothing to do with demand," said a second market participant.

Deutsche Bank declined to comment.


The headquarters of Deutsche Bank are pictured in Frankfurt October 29, 2013.  REUTERS/Ralph Orlowski