German lender Deutsche Bank (DB) announced that its Management Board has thoroughly reviewed a proposal for the settlement of the legal disputes initiated by Leo Kirch and his associates. The company said that based on the review, its Board decided without dissent not to accept the settlement proposal.
Deutsche Bank and the heirs of Leo Kirch, the media enterpreneur who died in July, were near an agreement to settle a dispute spanned over 10 years for around 800 million euros, reports said last month. The lender reportedly rejected a settlement worth 775 million euros proposed by a court in Munich.
The dispute arose from a statement made by Rolf Breuer, Deutsche Bank's then-chief executive officer, who in an interview with Bloomberg in 2002 cast doubts over the media group's creditworthiness. Kirch, who was a client of Deutsche Bank, vigorosly pursued the case in court stating those remarks led to the downfall of his empire and sought at least 3.3 billion euros.
by RTT Staff Writer
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