Deutsche Bank gets top investor support, CEO in talks with banks

Fri Oct 7, 2016 2:42pm EDT
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By Tom Finn and Arno Schuetze

DOHA/FRANKFURT (Reuters) - Deutsche Bank has secured backing from its largest investor and is seeking advice from other banks as it scrambles to restore market confidence undermined by a demand by U.S. authorities for up to $14 billion over mis-selling allegations.

Qatari investors who own the largest stake in Germany's largest bank do not plan to sell their shares and could consider buying more if it decides to raise capital, sources familiar with Qatari investment policy told Reuters.

"Purchasing more (Deutsche Bank) stock - that could be considered ... which is not to say there are any imminent plans to do that," said a source close to the Qatari investors who own just below 10 percent in Deutsche Bank. The source declined to be identified as the matter is confidential.

If a capital hike does turn out to be required, the Qatari investors would probably take part in it as they want to keep their roughly 10 percent stake, a second source close to the matter added.

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.

German weekly Der Spiegel reported, without citing sources, that Qatari investors around Sheikh Hamad bin Jassim al-Thani, with backing from sovereign wealth funds, were mulling taking a 25 percent in the lender, sending Deutsche Bank's U.S.-listed shares higher.

But sources familiar with the situation told Reuters it was unlikely that the Qataris would acquire a stake as big as 25 percent.   Continued...

A statue is pictured next to the logo of Germany's Deutsche Bank in Frankfurt, Germany September 30, 2016. REUTERS/Kai Pfaffenbach/File Photo