* Deutsche Bank says subscription price 11.65 a share
* News shares issued from authorised capital
* New shares have full dividend entitlement
(Adds detail, background)
FRANKFURT, March 19 Deutsche Bank on
Sunday announced it would issue 687.5 million new shares to
raise 8 billion euros ($8.59 billion) to fund a strategy
overhaul in what amounts to its fourth capital increase since
Germany's biggest lender had previously said it would wait
until global bank capital rules were finalised before setting
out how it intends to turn its business around.
But with regulators delaying the so-called Basel rules and
markets buoyant, Deutsche opted for a capital hike to pay for
hefty legal penalties including those stemming from its sale of
toxic U.S. mortgage debt and to free up cash for new
Deutsche Bank on Sunday said the subscription price for new
shares would be set at 11.65 euros per share, with the
subscription ratio set at 2:1.
The subscription period will run from March 21 until April 6
and the new shares will have same dividend entitlement as
existing shares, the company said.
Deutsche Bank is expected to publish the prospectus for the
rights issue on Monday.
This month it presented a new strategy that includes
floating its asset management business and scrapping plans to
sell retail unit Postbank.
($1 = 0.9310 euros)
(Reporting by Edward Taylor and Arno Schuetze; editing by Jason