Deutsche Bank said on Thursday it had settled a dispute with investment firm Effecten-Spiegel AG over claims it received an insufficient price for its acquisition of Postbank in 2010. Germany’s largest bank “reached an agreement with the complainant” Effecten-Spiegel AG on the basis of a “additional payment (including interest) of 36.50 euros per share”she said in a press release.
It was also agreed that Deutsche Bank would reimburse the legal costs incurred by Effecten-Spiegel AG, which are ending with this agreement, after it fought a legal battle in a series of courts, including at the federal level. The plaintiff “expects a result of around 8.8 million euros before taxes for the current financial year”she said in a separate statement.
Deutsche Bank has faced numerous lawsuits from shareholders who claimed to have been wronged during the takeover of Postbank in 2010, having received €25 per share at the time. In August, settlements were reached with more than eighty plaintiffs representing almost 60% of the total claims in the dispute, based on a payment of €31 per share.
As the provision to cover this legal risk was much higher, there will be a positive impact of 430 million euros on the group’s profit in the third quarter, the bank then specified. On Friday, Deutsche Bank’s share price rose 3.88% at 14:00 GMT on the Frankfurt Stock Exchange, within a Dax gaining 0.35%.
