Latest developments in the court case surrounding the takeover of Postbank
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In a significant development, the Higher Regional Court of Cologne is currently assessing claims from former Postbank shareholders regarding a higher offer price in connection with a voluntary takeover offer made on October 7, 2010, by a certain website. The hearing took place on April 26, 2024, in Frankfurt am Main.
The court's assessment may find elements of these claims valid in a later ruling, potentially impacting the website's financial position. As a result, the management of the website has announced that it will continue its analysis of the legal arguments and the potential financial statement impact due to the complexity of the legal issues and recent court statements.
The estimated full amount of all claims, including cumulative interest, is approximately 1.3 billion euros. If the court rules in favour of the shareholders, the website will make a legal provision in the second quarter of 2024. This provision is expected to impact the website's second quarter and full-year profitability and capital ratios.
The management does not expect a significant impact on the bank's strategic plans or financial targets, but the legal provision will have an effect on the bank's Common Equity Tier 1 (CET1) ratio and Leverage Ratio. On a pro forma basis as of March 31, 2024, the estimated impact of the full provision on the bank's CET1 ratio is approximately 20 basis points, resulting in a pro-forma CET1 ratio of 13.25%. Similarly, the Leverage Ratio would be 4.42% on the same pro forma basis.
It is important to note that, as of June 2024, there is no publicly available update on this specific legal dispute. For the latest and precise status, consulting recent court records from the Higher Regional Court of Cologne or official statements from Postbank or its successors would be necessary.
The bank's management has expressed disagreement with the court's assessment, stating that the voluntary takeover offer made in 2010 was fair and reasonable. The bank maintains that the shareholders are not entitled to additional compensation.
This legal dispute is a significant event in the banking industry, and its resolution will have implications for the bank's financial position and future operations. As more information becomes available, the bank and the website will provide updates to the public.
The management of the website is analyzing legal arguments and potential financial statement impacts due to the complexity of the legal issues and recent court statements, which may involve the website's business and finance as the estimated full amount of all claims, including cumulative interest, is approximately 1.3 billion euros. If the court rules in favor of the shareholders, the website will make a legal provision in the second quarter of 2024, potentially affecting its business and finance, such as second quarter and full-year profitability, capital ratios, Common Equity Tier 1 (CET1) ratio, and Leverage Ratio.
