Deutsche Bank AG and Deutsche Post AG have hammered out new conditions for the takeover of Post unit Deutsche Postbank, Post and Deutsche Bank said this afternoon.
The deal will give Deutsche Bank control of Postbank earlier than planned and pay for part of the takeover using its own new shares, helping it to preserve precious capital as the banking sector shudders through the worst financial crisis in decades.
In return, Deutsche Post, in which the German government holds a stake of more than 30 per cent, will receive payment for its 62 per cent stake in Postbank earlier than planned, money it can use elsewhere in its logistics empire.
The cash value of the transaction is €4.9 billion ($6.49 billion), the banks said.
The deal comes as Deutsche Bank, Germany's biggest lender, said it expected record net losses of €4.8 billion for the fourth quarter and €3.9 billion for 2008 in a surprise profit warning which sent its shares tumbling more than 7 per cent.
The losses again underscore the risks of executing major banking takeovers amid the financial sector turmoil. Commerzbank renegotiated terms in its acquisition of Allianz's Dresdner Bank, which it completed this week.
Deutsche Bank shares fell 9.8 per cent to €21.89 by 12.30pm, Deutsche Post fell 3.2 per cent to €9.42, while Deutsche Postbank fell 15.1 per cent to €12.18, cutting its market capitalisation to €2.7 billion.
The blue-chip German DAX index was down 1.7 per cent.