FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE) on Thursday said Los Angeles-based Capital Group has taken a 3.1% stake, boosting shares in Germany’s largest bank which has been hit by losses and misconduct scandals.
Deutsche Bank shares rose as much as 13.6% to their highest level in 16 months and marking their biggest intraday jump in four years. They were the top performers in the Frankfurt’s benchmark DAX index .GDAXI.
“We are happy for any shareholders, especially those with the track record and credibility of Capital,” Deutsche Bank said in a statement.
Capital Group in London declined to comment.
The scandals and more recently an aborted merger with rival Commerzbank (CBKG.DE) mean Deutsche Bank is still in recovery mode more than a decade on from the global financial crisis.
Last week, Deutsche Bank plunged to a bigger than expected loss of 5.7 billion euros ($6.3 billion) for last year, its fifth consecutive loss, as the cost of its latest turnaround attempt hit earnings.
After Capital Group’s investment, Deutsche Bank’s largest shareholder remains the Qatari royal family, with a combined share of at least 6.1%, the bank’s website showed.
That is followed by BlackRock with 4.49%, and Hudson Executive Capital with 3.14%.
Capital Group previously owned a stake in Deutsche a couple of years ago but then sold, according to a person with knowledge of the matter.
Capital decided to go in again at the end of last year, the person said, speaking on condition of anonymity.
Deutsche Bank’s shares fell to record lows last year but are so far up 36% this year.
“For Deutsche Bank, this is positive news and a sign of confidence, but the sharp rise in the share price seems a bit exaggerated to me,” said analyst Philipp Haessler of the brokerage Pareto Securities.
Reporting by Patricia Uhlig and Tom Sims; additional reporting by Hakan Ersen; editing by Sabine Wollrab/ Elaine Hardcastle/Jane Merriman