By Cristina Roca and Patricia Kowsmann
An anonymous investor sold stakes worth a total of 1.75 billion euros ($1.90 billion) in German lenders Deutsche Bank AG and Commerzbank AG, sending shares of the two lenders falling sharply on Tuesday morning .
At 08:14 GMT, shares of Deutsche Bank were trading down 10% at 10.70 euros, while shares of smaller peer Commerzbank were down 9.1% at 6.37 euros.
Morgan Stanley, which acted as bookrunner for the sale, said the investor sold 116 million Deutsche Bank shares at 10.98 euros per share and 72.5 million Commerzbank shares at 6, 55 euros per share. This represents stakes of around 5.6% and 5.8% in Deutsche Bank and Commerzbank, respectively.
The identity of the seller has not been disclosed.
Earlier this year, Deutsche Bank investor Cerberus sold some of its shares in Deutsche Bank and Commerzbank after years of disappointing performance by lender stocks.
“We remain confident in our strategy,” Deutsche Bank told The Wall Street Journal.
“The sale of an equity portfolio does not change our strategy. The bank’s business model and its risk management have proven themselves in these difficult times,” Commerzbank told the Journal. He declined to comment on the identity of the seller.