Deutsche Bank could call off pursuit of Postbank transaction
Deutsche Bank (FRA:DBK) could call off its pursuit of a Postbank transaction, according to reports.
The news was first reported by Manager Magazin, which said Deutsche Bank has fading hopes for either a spin-off or sale of the retail bank by next year. Reuters subsequently reported the same information, citing a source close to the situation. That report also cited an unidentified "top 10 investor" in Deutsche Bank who said he would not be opposed to the company retaining Postbank.
As reported, Germany’s largest lender had announced it was considering an IPO or a sale, with the deal being a major component of its plan to improve its leverage ratio and meet its capital targets. It said as recently as February that it still planned to dispose at least 50% of it before 2018.
Depressed equity market conditions in Germany and the absence of any likely buyers to this point are reportedly causing the company to re-evaluate its plan.