Admin I Monday, April 29, 2024
COLOGNE – German lender Deutsche Bank expects ongoing litigation concerning its acquisition of postal service retail bank Postbank to affect second-quarter and full-year profitability.
The Higher Regional Court of Cologne on Friday assessed claims from former Postbank shareholders contending that a higher offer price should have been paid in connection with Deutsche Bank’s voluntary takeover offer in October 2010.
The total value of the claims, inclusive of accumulated interest, is estimated at around €1.3 billion ($1.4 billion).
The court’s indications during the hearing suggest potential validity in some elements of the claims, which may impact Deutsche Bank’s estimation of future outflows and necessitate a legal provision in the second quarter of 2024, the bank said in a statement.
Despite Deutsche Bank’s staunch disagreement with the court’s assessment, the statements made by the court will influence the bank’s risk assessment regarding potential future financial implications.
The company noted that it will continue its thorough analysis of the legal arguments and the potential impact on financial statements.
Overall, Deutsche Bank does not foresee a significant impact on its strategic plans or financial targets at this stage.
