By Sell Puts
(Originally @Economic Burn)
THINK about why banks offer stock like this? 1. They obviously need 11 billion dollars and they do not care about diluting the existing shareholder base. Deutche Bank stock was hit hard early this afternoon falling from 63.50 to 59.50. ouch.
THINK about why banks offer stock like this? 1. They obviously need 11 billion dollars and they do not care about diluting the existing shareholder base. Deutche Bank stock was hit hard early this afternoon falling from 63.50 to 59.50. ouch.
(Bloomberg writes) Germany’s biggest bank has yet to decide on the sale, said the people, who declined to be identified because the plans are confidential. The proceeds may be used to increase the bank’s stake in Deutsche Postbank AG and to meet rising regulatory capital requirements, the people said.Deutsche Bank has the option to increase its almost 30 percent stake in Bonn-based Postbank, which currently has a market value of 5.6 billion euros. Deutsche Bank Chief Risk OfficerHugo Banziger said in an investor presentation in June that the Frankfurt-based bank would only raise capital for acquisitions.
