Qatar won't sell Deutsche Bank shares, might buy more: sources

Fri Oct 7, 2016 12:56pm EDT
 
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By Tom Finn and Kathrin Jones

DOHA/FRANKFURT (Reuters) - Qatari investors who own the largest stake in Deutsche Bank do not plan to sell their shares and could consider buying more if the embattled German bank decides to raise capital, sources familiar with Qatari investment policy told Reuters.

Funds controlled by Qatar's former Prime Minister Sheikh Hamad bin Jassim al-Thani bought 6.1 percent of Deutsche in mid-2014 and increased their stake to just under 10 percent, including options, in July this year.

But Germany's biggest bank has been engulfed by a crisis of confidence since last month after the U.S. Department of Justice demanded up to $14 billion to settle claims that the bank missold U.S. mortgage-backed securities before the financial crisis. It is fighting the fine but may have to turn to investors for more money if it is imposed in full.

Deutsche shares plunged to record intra-day lows below 10 euros last week on Friday and although they have since rebounded to just above 12 euros, they are 13 percent below last month's peak and 46 percent below their close at the end of last year.

That implies the Qataris may have lost, on paper, over $1.2 billion on their investments in the bank.

However a Qatari source, who is close to Sheikh Hamad's office but stressed that he was not involved in the Qataris' internal discussions about Deutsche, said he expected Sheikh Hamad to stand by the bank.

"Purchasing more stock - that could be considered ... which is not to say there are any imminent plans to do that," said the source, declining to be named as the matter is confidential.

Officials in Sheikh Hamad's office did not immediately comment, while Deutsche declined to comment.   Continued...

 
A Deutsche Bank banner is pictured in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany September 30, 2016. REUTERS/Kai Pfaffenbach/File Photo