BERLIN (Reuters) – Deutsche Bank AG (NYSE:) said a court ruling in its years-long Postbank takeover battle will require it to make a legal provision that will impact its second-quarter and full-year profitability.
Germany’s top lender said Cologne’s Higher Regional Court on Friday heard claims from some former Postbank shareholders that a higher offer price should have been paid for the 2010 takeover.
“During the hearing, the court indicated that in a later order it may find elements of these claims to be substantiated,” the bank wrote.
“While Deutsche Bank continues to strongly disagree with this assessment, the court’s statements will impact Deutsche Bank’s assessment of the likelihood of future capital outflows, leading to the legal provision being adopted in the second quarter of 2024.”
The provision will impact Deutsche Bank’s profitability and capital ratio in the second quarter and for the full year, it said.
The estimated total value of all Postbank shareholder claims, including aggregate interest, is approximately 1.3 billion euros ($1.39 billion). The spokesperson said this is a maximum allocation that has not yet been determined.
“Overall, management does not expect a material impact on the bank’s strategic plans or financial objectives,” it said.
In 2008, Deutsche Bank bought a stake of just under 30 percent in Postbank at a price of 57.25 euros per share. As Deutsche Bank gradually increased its stake in the following years, the financial crisis was in full swing and Deutsche Bank’s offer for the remaining shares was halved, irritating Postbank’s small shareholders.
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The lawsuit has been pending in German courts since 2011.
($1 = 0.9350 euros)