By Tom Sims and Alexander Hübner
FRANKFURT (Reuters) – Shares in Deutsche Bank and Commerzbank traded sharply lower on Tuesday after the previous day’s sale of more than 5% in both of Germany’s top two lenders by an undisclosed investor.
The exit by the large shareholder follows a similar move by U.S. private equity firm Cerberus in recent months and comes as both banks implement turnaround strategies to lift profitability and rebuild investor confidence.
Deutsche Bank was down 9.7% and Commerzbank 8.2% by mid-morning in Frankfurt.
A statement from Deutsche Bank said that it remained “confident” in its strategy.
“Our focused business model and risk-management capabilities have proven their resilience in challenging times,” it said.
Commerzbank said the sale won’t change its strategy.
“The bank’s business model and risk management have proven effective in challenging times,” it said.
The sale by the unnamed investor resulted in proceeds of 1.75 billion euros ($1.9 billion), based on calculations from information provided by bookrunner Morgan Stanley.
Capital Group of Los Angeles is one of the few investors that holds such sizeable stakes in both banks.
A spokesperson for the investor declined to comment on Tuesday.
($1 = 0.9210 euros)
(Reporting by Tom Sims and Alexander Huebner; Editing by Madeline Chambers and David Goodman)
