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Deutsche Bank plans to raise 8 billion euros through sale of new shares to boost finances
Shares plunge

BERLIN, Germany - Germany's biggest bank - Deutsche Bank - plans to raise some eight billion euros (6.9 billion pounds, $8.5 billion) through the sale of 687.5 million new shares in order to boost its finances.> BNN
The sale, due later this month on March 21, led to shares of the bank falling almost seven percent in early trading, even as the troubled lender goes in for an overhaul after dealing with huge losses and a 15 billion euro legal bill imposed by regulators since 2012.
The bank also plans to list its asset management business and revamp its business structure.
"Our decisions are a significant step forward on the path to creating a simpler, stronger and growing bank," Deutsche Bank CEO John Cryan said in a statement.
"On strategy, it's obvious we had a change of heart," Cryan remarked to journalists on Sunday afternoon.
"These measures will make Deutsche Bank stronger and place us back firmly on a path to sustainable growth."
Commenting on the move, Stefan de Schutter, a trader at Frankfurt-based Alpha, said, "The question is whether this will be the last capital hike or whether the bank will need more yet again in a few years. Until now, none of the restructuring measures have borne fruit."
The lender scrapped plans to sell its Postbank unit, saying it was unable to do so at an acceptable price.
Instead, it now wants to merge the operation into its other German retail business.
"We are very positive over prospects of banking in Germany," Cryan said.
However, analyst Magdalena Stoklosa of Morgan Stanley, wrote, "We await more detail."
"A credible integration of Postbank, further clarity of progress on investment banking restructuring... stabilization of outflows and restoring confidence in wealth and asset management businesses are all issues management would need to address."
Other European stocks also slid on Monday following Deutsche Bank's slide.
The Stoxx Europe 600 lost 0.4 percent to 373.69, but slightly reduced the loss as the consumer-services sector started to show a modest gain.
Top indexes in France and Germany both declined more than 0.5 percent.
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