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Deutsche Bank shares tank after profit warning

Shares in Germany's biggest bank, Deutsche Bank, plunged in early trade on Wednesday after it issued a profit warning.

Deutsche Bank shares tank after profit warning
Photo: DPA

The bank’s stock showed a loss of 8.12 percent to €41.12 while the DAX index of leading shares was 0.84 percent lower overall.

Deutsche Bank said on Tuesday that it would book a loss in the third quarter of its fiscal year stemming from its purchase of Postbank.

On Wednesday, Deutsche Bank launched a capital increase of €10.2 billion ($13.6 billion), its biggest ever, to pay for the acquisition of up to 30.6 percent of the shares in Postbank, which has Germany’s biggest retail bank network.

Deutsche Bank will offer €25 per share for this holding.

The subscription for the Deutsche Bank share offer runs from Wednesday to October 5, with the new stock to be listed in Frankfurt and New York from October 6.

Deutsche Bank already owns nearly thirty percent of Postbank and the deal will see it strengthen its retail operations and so balance its current focus on investment bank activities.

Comments made Tuesday about third-quarter results in its rights issue prospectus were interpreted as a surprise profit warning, Merck Kinck analyst Konrad Becker said.

As the result of a separate deal, Deutsche Bank is set to acquire the remaining equity in Postbank from German logistics group Deutsche Post in several steps in 2012-2013 at an already agreed price of €45 per share.

AFP/rm

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Emergency numbers fail in several German states

Callers to the emergency numbers 110 and 112 weren’t able to reach operators Thursday morning in several German states.

The 112 emergency number on an ambulance.
The 112 emergency number on an ambulance. Photo: picture alliance/dpa | Boris Roessler

The emergency number 110 for police and 112 for fire crews failed around the country early Thursday morning, with callers unable to reach emergency operators for urgent assistance between about 4:30 am and 5:40 am local time.

The Office for Civil Protection and Disaster Aid is looking into these outages, which were reported in states including Lower Saxony, Baden-Württemberg, and  Brandenburg, and in major cities like Berlin, Cologne, Hamburg, and Frankfurt. Cologne was further affected by cuts to electricity, drinking water, and regular telephone services. Lower Saxony also saw disruptions to the internal phone networks of police and hospitals.

Emergency services are not reporting any more disturbances and people should be able to once again reach 110 and 112 around the country as normal.

Investigators are looking into the problem, but haven’t yet established a cause or any consequences that may have happened due to the outage. Provider Deutsche Telekom says they have ruled out the possibility of an attack by hackers.

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