(Adds Deutsche Bank's response in paragraph 4)
Oct 6 Deutsche Bank AG is in informal
talks with securities firms to explore options including raising
capital should mounting legal bills require it, Bloomberg
reported on Thursday.
Senior advisers at top Wall Street firms are speaking to
representatives of Deutsche Bank about ideas including a share
sale and asset disposals, Bloomberg reported, citing people
familiar with the discussions. (bloom.bg/2dyvmuW)
The banks are offering to help underwrite a stock sale to
raise about 5 billion euros ($5.6 billion), the maximum amount
in discounted shares Deutsche Bank can sell without needing
shareholder approval, Bloomberg said.
A spokeswoman for Deutsche Bank in New York declined to
Bloomberg said Deutsche Bank could also go to shareholders
to request approval for more funds.
The German lender is deliberating whether to sell the shares
once it reaches a settlement with the U.S. Department of Justice
on a probe tied to residential mortgage-backed securities,
No final decisions have been made and the bank could decide
against a capital increase, Bloomberg reported.
Deutsche is fighting a fine of up to $14 billion from the
U.S. Department of Justice.
The chief executives of several German blue-chip companies
have discussed Deutsche Bank's problems and are ready to offer a
capital injection if needed to shore up Germany's largest
lender, German newspaper Handelsblatt reported earlier on
Thursday, citing sources.
($1 = 0.8974 euros)
(Reporting by Ismail Shakil in Bengaluru; Editing by Grant
McCool and Lisa Shumaker)