Commerzbank shares hit after discounted issue

SHARES of German lender Commerzbank dropped as much as 5.6 per cent in early trading yesterday after the firm priced the sale of around 2.4bn shares at a steep discount to their market value.

The sale will raise around €5.3bn (£4.6bn) and is a step in Commerzbank’s previously-announced plan to repay €14.3bn of state aid. Shares in Commerzbank eventually closed 2.8 per cent down at €3.84 in Frankfurt, having fallen as much as 5.6 per cent at the start of trading.