Deutsche sours relationship with Terra Firma after acting on rival financing

David Hellier
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TERRA FIRMA, Guy Hands’ private equity group, was last night said to be unimpressed by a decision by Deutsche Bank, one of a group of banks involved in its flotation of Deutsche Annington, to get involved in a €400m (£345.2m) sale of shares in another German property group, Gagfah.

Terra Firma declined to comment but a source close to Hands said the German bank never sought permission to work on the Gagfah deal.

Deutsche Annington’s flotation was pulled last week after it failed to get sufficient investor interest but it was unexpectedly revived on Monday. Shares in the group, which is majority owned by Terra Firma, begin trading today.

Bankers said they were surprised by Deutsche’s decision to work on the Gagfah block trade, given the bank was a book-runner in the Terra Firma deal.

The sale of shares in Gagfah failed to attract sufficient buyers and some fear its lack of success might affect Deutsche Annington’s share debut.

Deutsche declined to comment yesterday but sources say the bank only found out the Deutsche Annington sale was back on on Monday.