Deutsche Bank has reportedly gained permission to initiate a public offering later this year of a 40% stake in Axel Springer, Europe’s largest newspaper publisher.
The stake was previously in the hands of Kirch Gruppe, which used it to secure a €720 million ($676m; £464m) loan from DB, giving the bank first right to the shares when the debt-stricken media group defaulted. However, a secondary right is held by BayernLB, Lehman Brothers and J P Morgan Chase, who have the power to veto any sale.
According to insiders, DB’s proposed public offering has been given the thumbs-up by its three fellow banks, paving the way for the stake’s sale after the summer.
The offering is expected to raise nearly €800m, making it the biggest in Germany this year.
Data sourced from: Handelsblatt (Germany); additional content by WARC staff