Categories: BankingNewsWorld

Cerberus cuts Deutsche Bank,Commerzbank stakes in $500 mln share sale

FRANKFURT, Jan 10 (Reuters) – U.S. financial investor Cerberus (CBS.UL), which has favoured a merger of Deutsche Bank (DBKGn.DE) and Commerzbank (CBKG.DE) in the past, on Monday divested a large chunk of its holdings in the two top German lenders, the bank running the sale said.

The sale marks a significant scaling back by one of the most prominent investors in the financial sector of Europe’s largest economy and comes at a time when large-scale consolidation in the continent’s banking sector is still waiting to happen.

Cerberus, which until now held around 3% of Deutsche Bank and 5% of Commerzbank and had ranked among the top-10 shareholders of both banks, sold 21 million Deutsche Bank shares and 25.3 million Commerzbank shares, Morgan Stanley (MS.N) said.

Cerberus, which took stakes in both banks in 2017, fetched 443 million euros ($502 million) in the sale, Morgan Stanley said, a roughly 3% discount to Monday’s closing price.

The divestment reduces Cerberus’ stake in Deutsche Bank to around 2%, and its stake in Commerzbank to 3%.

Cerberus has committed to a 45-day lock-up period during which it will not sell additional stakes, Morgan Stanley said.

Deutsche Bank and Commerzbank shares were down 1.9% and 4.9% respectively in after-hours German trading following the news.

Cerberus has at times been a vocal investor, demanding changes at Commerzbank in 2020 that prompted a management reshuffle as well as substantial job cuts.

Since Cerberus bought its stakes, shares in both lenders are down more than 20%.

The investor did not respond to requests for comment.

Deutsche Bank and Commerzbank both declined to comment.

($1 = 0.8832 euros)Reporting by Alexander Huebner, Christoph Steitz, Frank Siebelt and Tom Sims; editing by Susan Fenton, Kevin Liffey and Richard Chang

This article was originally published by Reuters.

Global Business Magazine

Recent Posts

Iraq Signals Rapid Oil Export Recovery Once Key Shipping Route Reopens

Basra officials say output can rebound within days as Hormuz disruption continues to weigh on…

11 hours ago

UAE Unveils Landmark R&D Tax Incentive Framework to Boost Innovation Economy

New regime offers up to 50% tax relief, setting the stage for research-led growth and…

2 weeks ago

Dubai’s Bankers Assess Post-Conflict Reality as Economic Pressures Mount

Tourism slowdown, real estate stress, and financial volatility drive calls for policy intervention Nearly a…

2 weeks ago

Dubai Strengthens Supply Chain Resilience: Dubai Chambers, DP World & Dubai Customs Engage 100 Companies

In a strategic move to reinforce global trade resilience and enhance logistics efficiency, Dubai Chambers,…

3 weeks ago

Dubai Real Estate Sales Plunge Over 40% Amid Middle East Conflict, Investors Turn Cautious

Dubai’s once-booming real estate sector is witnessing a sharp slowdown, with property sales dropping by…

3 weeks ago

Dubai luxury property market brings developer sales of AED10.92 billion in March

Keturah analysis shows developer transaction volume climbed 42% YoY with a week of the month remaining…

3 weeks ago