Deutsche Bank bids to take over Postbank

Germany’s giant bank, Deutsche Bank, said that it will raise € 9.8bn (USD 12.4bn) in new equity as it seeks new capital investment to take over the retail bank Postbank.

Deutsche Bank already owes a third of the equity in Postbank, and the capital increase should secure the equity required for a much needed consolidation of the retail bank.

Markets around Europe reacted to the news with a drop in the value of Deutsche Bank shares.