(Bloomberg) -- Deutsche Bank AG’s management opposed an investor’s proposal to split the investment bank from the retail unit, saying it would destroy value for shareholders.
Any such move would have “inferior economics and strategic outcomes,” the management board said in the bank’s expanded annual general meeting agenda. Investors should vote against the split proposed by shareholder Riebeck-Brauerei. In the same document, the supervisory board expressed its unanimous support for Chairman Paul Achleitner.
The statement comes amid heavy speculation about the future of Europe’s largest investment bank. New Chief Executive Officer Christian Sewing will soon unveil sweeping cuts, especially in the U.S., people familiar with the matter have said, as he seeks to cut costs and tries to adjust the bank’s strong exposure to volatile capital markets.
Regardless of any strategic merits, such a plan to split the bank’s businesses would be impossible to implement “in the near-term” and would be too time-consuming and costly, the management board said.
Riebeck-Brauerei, which made the proposal to split the bank, also called on investors to remove chairman Achleitner.
The supervisory board considers the shareholder’s allegations against Achleitner “groundless and has full confidence in his performance of office,” it said in the agenda extension.
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