Shares of Germany’s top two lenders fell sharply in Frankfurt on Tuesday morning after Morgan Stanley notified investors on Monday of an undisclosed investor dumping the stocks.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
At the close of U.S. trade on Monday, Deutsche Bank (DB) ended the day 6.4% lower at $11.99, while Commerzbank (CRZBY) had lost 3.14% to close at $7.26.
By mid-morning on Tuesday, Deutsche Bank had dropped almost 10%, while Commerzbank was trading over 8% lower in Frankfurt.
According to a note announcing the sale, 116 million Deutsche Bank shares and 72.5 million Commerzbank shares amounting to more than 5% of both companies were put up for sale, resulting in proceeds of 1.75 billion euros ($1.9 billion) for the investor.
Speculation over who the undisclosed seller could be has led investors to Capital Group of Los Angeles, however, a spokesperson for the firm declined to comment.
Capital Group holds sizeable stakes in both companies, having increased its holdings in Deutsche Bank in November 2021, and in Commerzbank in October 2020, to more than 5%.
U.S. private equity firm Cerberus has also recently been offloading its holdings in the two German lenders as both banks attempt to implement turnaround strategies.
Both Deutsche Bank and Commerzbank assured investors that they are confident their strategies moving forward would prove effective in challenging times.
Discover new investment ideas with data you can trust.
Read full Disclaimer & Disclosure
Related News:
Apple Stock Expected to Rise on After Shifting Manufacturing to India
Mercedes-Benz Updates Carbon Neutral Plan
Shopify Woos Investors With Stock Split
