International and German investors have sued Deutsche Bank for 740 million euros ($890 million) in connection with the bank’s takeover of Postbank, their lawyer said.
Oliver Krauss, a lawyer at Munich-based firm Tricon, said Deutsche Bank should have paid his 31 clients, former Postbank shareholders, around 64 euros per share rather than the 25 euros they received when they accepted the takeover offer in 2010.
They argue, in a suit filed in late December in a district court in Cologne, that Deutsche Bank effectively took control of Postbank in 2008 when it bought a stake of just under 30 percent at a much higher price than 25 euros. They say as a result Postbank shareholders are entitled to a much higher price for their holdings.
A spokesman for Deutsche Bank said the complaint was unfounded, as were other similar suits that are currently making their way through the courts.
A spokeswoman for the court declined to comment.
German weekly WirtschaftsWoche first reported the lawsuit.
Krauss, citing client confidentiality, declined to provide a copy of the lawsuit but confirmed the accuracy of the WirtschaftWoche article.
WirtschaftsWoche said the lawsuit detailed examples of Postbank and Deutsche Bank acting in concert in 2008, including a strategy change to focus on retail customers and dropping riskier forms of business.
In addition, WirtschaftsWoche said Postbank and Deutsche Bank agreed on details of a planned capital increase, board changes and the elimination of a 2008 dividend.
December 31 marked a deadline for taking legal action on the takeover.
Re-disseminated by The Asian Banker from Reuters