Deutsche-Commerzbank merger faces Qatari resistance

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Persian Gulf shareholders fear dilution should Deutsche Bank be forced to sell shares to fund the deal

FILE PHOTO: Banners of Deutsche Bank and Commerzbank are pictured in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, September 30, 2016. Picture: REUTERS / KAI PFAFFENBACH

Deutsche Bank shares have slumped by about two thirds since Qatar first invested about five years ago. The discontent among key shareholders adds to widening opposition to the deal, which Germany sees as a way to ensure financing to the country’s export-oriented economy during a downturn. Asset management firm BlackRock, which likewise owns stock in both lenders, indicated it may be sceptical about a deal.

Qatari entities own more than 6% of Deutsche, which declined to comment. Qatar’s government communications office did not immediately respond to a request for comment. Qatar’s former ruler, Sheikh Hamad bin Khalifa Al Thani, and former prime minister Sheikh Hamad bin Jassim Al Thani couldn’t be reached.

 

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