Was the compulsory compensation in the course of Deutsche Bank’s majority takeover of Postbank high enough? This has been a matter of debate for years. Now there is a settlement.
In the compensation dispute between Deutsche Bank and former Postbank shareholders, the institute has reached an agreement with a large number of plaintiffs. The agreement had a positive effect on the pre-tax result in the third quarter of 430 million euros, the bank announced. As proposed by the institute, a settlement was reached with more than 80 plaintiffs, who accounted for almost 60 percent of all claims asserted, based on a price of 31 euros per share.
The parties with whom an agreement was reached include the largest individual plaintiff in the litigation complex, which accounts for around a third of all claims asserted. Deutsche Bank assumes that the settlements reached will on average require around 45 percent of the provisions. If settlement agreements are concluded with other plaintiffs, this could have a greater positive impact on the overall provisions set up for the litigation complex.
1.3 billion euros set aside as a precaution
The background is the majority takeover of Postbank by Deutsche Bank in 2010. The question is whether the compulsory compensation of minority shareholders decided this year was appropriate and whether Deutsche Bank did not actually have control over the Bonn-based institute even before the public takeover offer for Postbank in 2010 – and should have paid investors more money.
In an oral hearing at the end of April, the Cologne Higher Regional Court indicated that it might rule in favor of the plaintiffs. Deutsche Bank set aside 1.3 billion euros as a precaution. The provision caused the DAX group to be in the red in the second quarter: the bottom line was a loss of 143 million euros.
Source: Stern
