Activist Fund Hudson Buys Deutsche Bank Stake as Shares Languish

(Bloomberg) -- Hudson Executive, an activist hedge fund, built a 3.1 percent stake in Deutsche Bank AG as the lender’s shares hover near all-time lows, adding to pressure on management to turn around the ailing business.

  • The Wall Street Journal earlier reported the news, which was confirmed by a Deutsche Bank spokesman.

Key Takeaways

  • CEO Christian Sewing will need to work with another top investor; Hudson joins Cerberus, HNA and the Qataris with the largest stakes in the company
  • Sewing is under pressure to revive returns and halt a decline in revenue after posting the lowest third-quarter sales in eight years and abandoning some targets
  • Hudson indicated in a separate statement that it is largely supportive of the existing strategy, and will benefit significantly from an uptick in interest rates when that comes
  • Still, a new investor with a deep background in financial services may push Deutsche Bank to undertake a more radical strategy, and it’s unlikely to quell continued speculation the bank may end up merging with smaller rival Commerzbank AG