Shares of Deutsche Bank and Commerzbank slipped after a report in the Financial Times stated that the former is in talks to raise as much as 10 billion euros ($11.2 billion) in fresh equity to support their potential merger.
The report published Thursday, citing people familiar with the talks, said executives from Deutsche Bank have been looking at a plan to raise equity of between 3 billion euros and 10 billion euros.
Shares of Deutsche Bank slipped nearly 4 percent, while Commerzbank slipped more than 2 percent. According to the FT, the capital increase is expected to equal 40 percent of the two German lenders’ combined market capitalization.
