An unnamed investor sold 1.75 billion euros worth of assets held by German banks Deutsche Bank and Commerzbank, leading to a sharp drop in shares of the two banks.
Deutsche Bank’s share is trading 10% lower at 10.70 euros, while its smallest competitor is falling 9.1%.
Morgan Stanley, which organized the sale, said the investor had sold 116 million shares of Deutsche Bank at a price of 10.98 euros each and 72.5 million shares of Commerzbank at 6.55 euros each. .
This represents 5.6% for Deutsche and 5.8% for Commerzbank.
The identity of the seller was not disclosed.
Earlier this year, Deutsche Bank investor Cerberus sold a stake in Deutsche Bank and Commerzbank after years of disappointing performance.
“We remain confident in our strategy,” Deutsche Bank said.
“Selling a portfolio of shares does not change our strategy. The bank’s business model and risk management have proven their worth in difficult times,” said Commerzbank.
Source: Capital
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