Deusche Bank, Commerzbank tumble after investor offloads shares

Deutsche Bank and Commerzbank tumbled on Tuesday on news that a key investor had offloaded a major stake in both German lenders.

According to reports, an undisclosed investor has sold shares that amount to no more than a 5% stake in each. It was understood the investor sold 116m shares of Deutsche and 72.5m shares of Commerzbank.

CNBC said one investor who holds such sizeable stakes in both banks is Los Angeles-based Capital Group.

According to Bloomberg, the DB shares were offered at a 7.9% discount to the closing share price on Monday, while the Commerzbank shares were sold at a 6.6% discount.

At 1015 BST, Deutsche shares were down 9.2% at €10.82, while Commerzbank shares were 8.5% lower at €6.42.