- Oops!Something went wrong.Please try again later.
By Tom Sims and Alexander Hübner
FRANKFURT (Reuters) - U.S. investor Capital Group sold big stakes in Germany's two top banks - Deutsche Bank and Commerzbank - a person familiar with the matter said, dealing a blow to both lenders as they seek to rebuild investor confidence.
Shares in the two banks traded sharply lower on Tuesday after the previous day's sale of more than 5% in each of them by what had been an undisclosed investor.
The exit follows a similar move by U.S. private equity firm Cerberus in recent months and comes as both banks implement turnaround strategies to lift profitability and the value of their shares.
Capital Group, based in Los Angeles, is one of the few holders of such sizeable stakes in both banks, but it has declined to comment on the matter.
The person confirming the name spoke on condition of anonymity.
Deutsche Bank shares were down 8.8% and Commerzbank had lost 8% by mid-afternoon in Frankfurt.
A statement from Deutsche Bank said that it remained "confident" in its strategy.
"Our focused business model and risk-management capabilities have proven their resilience in challenging times," it said.
Commerzbank said the sale won't change its strategy.
"The bank's business model and risk management have proven effective in challenging times," it said.
The sale resulted in proceeds of 1.75 billion euros ($1.9 billion), based on calculations from information provided by bookrunner Morgan Stanley.
($1 = 0.9210 euros)
(Reporting by Tom Sims and Alexander Huebner; Editing by David Goodman, Kirsten Donovan)