Frankfurt, Germany — A legal battle that has spanned over a decade involving Deutsche Bank and its acquisition of the German retail giant Postbank is reaching another crucial juncture. The contention centers around allegations that Deutsche Bank significantly underpaid during its phased takeover of Postbank starting in the late 2000s. The dispute has persisted since 2010, attracting numerous lawsuits from both institutional and private investors.
On Thursday, a settlement proposal of 36.50 euros ($40.12) per Postbank share was made by Deutsche Bank, according to Jan Bayer, a senior partner at the law firm Bayer Krauss Hueber. The offer was quickly criticized by plaintiffs’ representatives as insufficient, casting doubt on its acceptance.
The proposal was described by Bayer as “a late low ball” offer, allegedly part of a strategy by Deutsche Bank to avoid a conclusive court decision. Legal representatives stressed that this tactic was anticipated, despite previous indications from the bank that suggested a more forthcoming approach to settlement discussions.
With a crucial hearing scheduled at the Higher Regional Court in Cologne next Wednesday, the timing of the bank’s offer—made during a holiday season—was also pointed out as problematic, complicating efforts to reach all claimants before the impending deadline.
The settlement must be accepted unanimously by the claimants, but already one has rejected the proposal, making it likely that the case will proceed to court. If the meeting does not result in a settlement, the legal standoff is set to continue, with significant financial implications for Germany’s largest bank.
The ongoing lawsuit has already had a tangible impact on Deutsche Bank’s financial health. The bank’s most recent quarterly report revealed a net loss for shareholders—the first in four years—primarily due to provisions totaling 1.3 billion euros set aside for potential outcomes related to the Postbank litigation. Despite these challenges, Deutsche Bank shares have seen an upturn, registering a nearly 12% increase year-to-date.
Despite having previously contested the plaintiff’s claims successfully in the Higher Regional Court of Cologne in 2020, the case was reopened when Germany’s Federal Court of Justice overturned this decision in 2022, remanding it back for a fresh hearing.
A spokesperson for Deutsche Bank reiterated the bank’s commitment to finding a resolution through settlement discussions but refrained from further comment due to the sensitive nature of the ongoing talks. As these settlement discussions continue, the financial community and investors are watching closely, understanding that the final verdict could have broader implications for banking acquisitions and mergers within Germany and potentially beyond.
As the court date approaches, all eyes are on the Higher Regional Court in Cologne to see whether a financial settlement can be reached or if a more dramatic court battle is on the horizon. Legal experts suggest that the outcome could set important precedents for how similar cases are handled in the future, potentially reshaping the landscape of corporate acquisitions in Germany’s banking sector.