Exclusive Exclusive: Deutsche Bank Won't Complete Postbank Sale in 2016, Sources Say
Germany’s largest bank Deutsche Bank will take longer than originally anticipated to float its subsidiary Postbank and may move to sell the bank to a competitor instead, the business weekly WirtschaftsWoche has learned. Sources close to the bank’s management and supervisory board said they expect to only sell a small part of Postbank’s shares, if at all, this year, as WirtschaftsWoche has learned. Former co-chief executive Anshu Jain announced the planned sale in 2015, originally with the intention to complete it by the end of 2016. “The deconsolidation of Postbank has been and remains a definite goal of Deutsche Bank,” a Deutsche Bank spokesperson said, but would not comment on the timing. A deconsolidation would mean selling at least half of the shares. Deutsche Bank currently values Postbank, which it bought in 2008, at about €4 billion in its balance sheet. Because of the low-interest environment, it is unlikely that the retail bank will fetch a high price in 2016. As a result, Deutsche Bank now prefers selling Postbank to a competitor instead of floating it, WirtschaftsWoche has learned. Rumor has it that German HypoVereinsbank, Commerzbank or Spanish Santander could be interested. Even though Deutsche Bank might not sell Postbank this year, the two institutes still plan to complete the separation of their operations by the end of this year, according to sources. WirtschaftsWoche is a weekly German business magazine and sister-publication of Handelsblatt.
01/05/2016 - 04:19 PM