Deutsche Bank’s largest investors, investment vehicles controlled by the Qatari royal family, would be ready to take part in a capital increase, according to German business monthly Manager Magazin.
Germany’s biggest lender is battling to contain the damage from a U.S. demand for a $14 billion settlement over the sale of toxic mortgage bonds before the financial crisis. It is fighting the fine but could have to turn to investors for more money.
The magazine said Qatar and Abu Dhabi’s sovereign wealth funds and an unnamed investor from China would also be prepared to participate in any capital hike.
Together with those, the Qatari investors, who center around Sheikh Hamad bin Jassim al-Thani, would be prepared to raise their total stake to 25 percent from 10 percent, it said. Sovereign wealth funds the Qatar Investment Authority and the Abu Dhabi Investment Authority both declined to comment on the report.
Deutsche Bank also declined to comment on the report, which briefly lifted its shares more than 4 percent to a five-week high. The shares have been hammered since September when news of the U.S. fine emerged. Manager Magazin said confidence was growing at the bank that it would come away with a fine significantly lower than $14 billion, and that a capital increase would be unnecessary.