Deutsche Bank AG (NYSE: DB) is having a strong day in the market today, and for good reason. Stories are surfacing that the German government is getting involved in working to make a big bank merger take place. Of course, the news is exciting investors, sending the stock on a run for the top. Today, we’ll talk about:
- Germany’s involvement in the merger;
- what we’re seeing from the stock; and
- what we’ll be watching for with regard to DB ahead.
DB Stock Gains As Germany Gets Involved In Merger
As mentioned above, Deutsche Bank is having a strong day in the market today as Germany gets involved in a merger. According to various reports breaking this morning, Germany’s government is working to facilitate the merger between the company and Commerzbank.
The story first surfaced on Bloomberg, citing unnamed sources. According to the report, German Finance Minister Olaf Scholz and Deutsche Bank CEO, Christian Sewing have held high level meetings to help facilitate the merger.
While the story is surfacing just about everywhere online, spokesmen for both companies have declined to comment. Also a spokeswoman for Germany’s finance ministry offered up nothing of substance with regard to the reported conversations between the German government and DB CEO.
According to the sources, the discussion involved possible ways to change laws. In doing so, the merger would become cheaper. Nonetheless, talks are reported to be in exploratory phases.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to Deutsche Bank, the news proved to be positive. Should these discussions go well, tax laws could change that would make a merger cheaper and more likely to happen between two of the largest banks in Germany. So, it’s not surprising to see that excited investors are pushing the stock up in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:59), DB is trading at $8.96 per share after a gain of $0.64 per share or 7.62% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on DB. In particular, we’re interested in following the news surrounding the potential merger. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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