Cerberus places $242 million worth of Deutsche Bank shares

A woman walks past a Deutsche Bank office in London, Britain July 8, 2019. REUTERS/Simon Dawson
  • Cerberus places 15 mln shares in Deutsche Bank
  • Placement price: 14.15 eur/shr
  • Sale reduces stake to around 1.26% from 1.99%
  • Cerberus placement is second within a month

FRANKFURT, Feb 8 (Reuters) - Cerberus placed 15 million shares in Deutsche Bank (DBKGn.DE), a term sheet from the investment bank running the sale showed on Tuesday, making it the second time within a month that the U.S. investment fund sold shares in Germany's largest lender.

The latest sale by Cerberus, which currently holds 1.99% in Deutsche Bank, equates to a stake of around 0.73% and would cut the fund's holding to roughly 1.26%.

Morgan Stanley, the bookrunner, said Cerberus' shares were successfully placed with institutional investors at 14.15 euros per share, a discount of 1.6% to Tuesday's closing price and resulting in proceeds of about 212 million euros ($242 million).

The bank's stock is up more than 30% so far this year.

The sale comes after Cerberus sold a stake of around 1% in the bank in January. read more Sources have told Reuters that further sales were expected.

Cerberus has agreed to a 30-day lock-up in Deutsche Bank, during which it will not sell additional stakes, Morgan Stanley said and the placement is expected to settle on Feb. 11, 2022.

($1 = 0.8758 euros)

Reporting by Tom Sims and Christoph Steitz. Editing by Jane Merriman

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Thomson Reuters

Covers German finance with a focus on big banks, insurance companies, regulation and financial crime, previous experience at the Wall Street Journal and New York Times in Europe and Asia.