On Sunday Deutsche Bank AG, Germany’s biggest bank, announced that it is planning a share sale worth roughly 9.8 billion euros (US$12.5 billion), a larger share sale than reported by insiders last week.
CEO Josef Ackermann may be considering the sale of stock to prepare for stricter bank capital rules in the European Union, which the Basel Committee is currently reviewing, to be called “Basel III.” Shares of Deutsche Bank fell almost 5 percent in trading on the Frankfurt Exchange last week, hit by news of the possible share sale. “The capital increase is primarily intended to cover capital consumption from the planned Postbank consolidation, but will also support the existing capital base to accommodate regulatory changes and business growth,” the bank said in a statement.
