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On Friday, an attorney representing the claimants in a prolonged dispute criticized Deutsche Bank for what he described as a “belated and insufficient” settlement proposal concerning their acquisition of Postbank, a prominent German retail bank, in the late 2000s.
The controversy centers around allegations that Deutsche Bank significantly undervalued Postbank during its takeover, which has been subject to legal scrutiny since 2010. The case involves several hundred plaintiffs, including both institutional and individual investors, with multiple lawsuits still pending.
Jan Bayer, a senior partner at the law firm Bayer Krauss Hueber, reported to CNBC that Deutsche Bank proposed a settlement of 36.50 euros per Postbank share last Thursday. The plaintiffs are faced with a tight deadline, having only until the upcoming Monday to issue a response.
This settlement offer was first announced by Reuters and has come just before a scheduled appellate court session in Cologne slated for this Wednesday. Bayer expressed skepticism regarding the timing and sincerity of the offer, noting that the bank had previously indicated different intentions. He emphasized that the likelihood of all parties accepting the offer was slim, especially since at least one claimant has already declined.
Bayer criticized the timing of the offer, which was made during a holiday period, complicating efforts to reach all claimants promptly. His firm represents around 50 mostly institutional plaintiffs seeking total compensation nearing 1 billion euros.
A spokesperson from Deutsche Bank, while refraining from detailed comments, mentioned ongoing mediation talks with various plaintiff groups related to the Postbank acquisition. However, specifics of these discussions remain undisclosed.
The protracted legal battle has notably affected Deutsche Bank’s recent financial performance. Following a significant provision of 1.3 billion euros for this case, the bank reported a net loss to shareholders last month—the first in four years. Despite these challenges, Deutsche Bank’s shares have seen an uptick of nearly 12% year-to-date, according to the latest LSEG data.
Previously, Deutsche Bank had defended its position, asserting that the plaintiffs’ demands for a higher takeover bid were baseless—an assertion initially upheld by the Cologne Higher Regional Court in 2020. However, this decision was overturned in 2022 by the German Federal Court of Justice, and the case was remanded for a new judgment.
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