Deutsche Bank and former Postbank shareholders have been arguing for many years about whether the compulsory severance payment was high enough. The Cologne Higher Regional Court has now approved ex-shareholders in a case.
In a years-long compensation dispute between Deutsche Bank and former Postbank shareholders, the Cologne Higher Regional Court fully upheld the former shareholders’ rights. The court in Cologne announced this (ref. 13 U 231/17).
The background is the majority takeover of Postbank by Deutsche Bank in 2010. The question was whether the compulsory compensation for the minority shareholders decided in 2010 was appropriate and whether Deutsche Bank did not actually have control over the Bonn-based company before the public takeover offer for Postbank in 2010 Institute had – and would have had to pay investors more money.
OLG Senate follows the plaintiffs’ argument
The decision was made on the lawsuits of 13 former Postbank shareholders. In October 2010 they received 25 euros per Postbank share from Deutsche Bank. They later demanded payment of the difference between this amount and the amount that, in their opinion, would have been payable at an earlier point in time when the share price was significantly higher – namely 57.25 euros. Deutsche Bank should have made a takeover offer in 2008 because it had already gained control of Postbank back then, they argued. Based on the legal requirements of the Federal Court of Justice in an earlier appeal procedure, the responsible civil senate of the Higher Regional Court has now followed this argument, it was said.
The Senate did not allow an revision. Deutsche Bank can, however, file a non-admission complaint with the Federal Court of Justice. “After receiving the reasons for the judgment, Deutsche Bank will consider filing an appeal against non-admission,” the bank said on Wednesday.
Bank: Out-of-court settlements with 70 percent of the plaintiffs
There were originally many more plaintiffs in the complex now decided by the Higher Regional Court. However, a few weeks ago, Deutsche Bank said it was able to reach an out-of-court agreement with a total of 70 percent of the plaintiffs in two settlements. This corresponded to 62 percent of all claims made. The plaintiffs received a premium of EUR 31 and EUR 36.50 per share in the settlements.
In an oral hearing at the end of April, the Cologne Higher Regional Court had already indicated that it could decide in favor of the plaintiffs. As a precautionary measure, Deutsche Bank set aside 1.3 billion euros, which left the DAX group in the red in the second quarter. After the agreements, the bank was able to liquidate 440 million euros in the third quarter, as the financial institution announced on Wednesday. According to the bank, further lawsuits in the matter are pending at the Cologne Regional Court. The bank estimated the remaining reserves at just under 550 million euros.
Bank: Provisions fully cover receivables
Deutsche Bank further stated that the ruling has no impact on the previously reached settlement agreements. The bank has set aside provisions that fully cover the plaintiffs’ outstanding claims plus accrued interest, it said in a statement. “This means that the bank sees itself as virtually fully financially secure.” Additional burdens could only arise from additional interest accruing, currently amounting to around two million euros per month.
Source: Stern
