Postbank backs Deutsche Bank takeover offer

AP News
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Posted: Oct 20, 2010 4:54 AM
Postbank backs Deutsche Bank takeover offer

German retail lender Deutsche Postbank AG recommended Wednesday that its shareholders accept a takeover offer from the country's biggest bank, Deutsche Bank AG.

Deutsche Bank last month announced plans for a full takeover of Postbank, of which it already holds nearly 30 percent, for an estimated total cost of euro6.3 billion. It offered euro25 ($34.61) per share _ a cash payment matching the volume-weighted average price over the previous three months.

Postbank said its management and supervisory boards have now concluded that the price is "appropriate" and are recommending shareholders accept.

It welcomed Deutsche Bank's pledge to maintain Postbank as a separate company and brand.

Deutsche Bank CEO Josef Ackermann has said the takeover would allow Deutsche Bank to expand its position in Germany and in the retail banking business, and to improve its revenue mix.

Ackermann's bank recently concluded a euro10.2 billion capital increase intended primarily to finance the takeover.

It has said that it expects to report a third-quarter net loss after taking a charge of about euro2.3 billion to revalue its existing investment in Postbank.

Deutsche Bank shares were down 0.5 percent at euro41.99 in Frankfurt trading Wednesday. Postbank slipped 0.1 percent to euro25.