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A woman searches in a dustbin in front of a branch of Germany's Commerzbank in Frankfurt May 10, 2013. Commerzbank, Germany's No.2 lender, will have to work hard to entice investors to its 2.5 billion euro ($3.3 billion) share call this month after painting a bleak outlook for the rest of this year. Chief Financial Officer Stephan Engels said 2013 would be a year of transition for the bank, which posted a net loss of 94 million euros in the first three months as it booked a 493 million euro restructuring charge linked to 4-6,000 job cuts.
A woman searches in a dustbin in front of a branch of Germany's Commerzbank in Frankfurt May 10, 2013. Commerzbank, Germany's No.2 lender, will have to work hard to entice investors to its 2.5 billion euro ($3.3 billion) share call this month after painting a bleak outlook for the rest of this year. Chief Financial Officer Stephan Engels said 2013 would be a year of transition for the bank, which posted a net loss of 94 million euros in the first three months as it booked a 493 million euro restructuring charge linked to 4-6,000 job cuts.
(Lisi Niesner/Reuters)

FINANCIAL TIMES

Commerzbank share issue just a drop in the bucket

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

Commerzbank chairman Martin Blessing has good reason to feel peeved. Since rival Deutsche Bank announced an equity issue to help its capital position last month, its shares have risen 9 per cent. But Commerzbank’s shares have fallen 23 per cent since it announced its own €2.5-billion ($3.3-billion) equity issue in March.