2010-09-09bloomberg.com

Deutsche Bank AG is considering a stock sale of as much as 9 billion euros ($11.4 billion) to boost its stake in Deutsche Postbank AG and meet stricter capital rules, said three people with knowledge of the talks.

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“I’m wondering if this is in relation to the Basel news that will be coming out over the weekend,” said William Fitzpatrick, a financial-industry analyst at Optique Capital Management in Milwaukee, which manages $700 million and owns stock in Deutsche Bank. “I’d imagine there’s a link there.”

Policy makers are seeking to increase the reserves held by banks to avoid another financial crisis. Deutsche Bank, which sidestepped the worst of the financial crisis and eschewed a government bailout, had a Tier 1 capital ratio of 11.3 percent at the end of June.



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