Deutsche Bank, Post set new terms in Postbank sale

By Philipp Halstrick and Matthias Inverardi

FRANKFURT/DUESSELDORF (Reuters) - Deutsche Bank (DBKGn.DE) and Deutsche Post (DPWGn.DE) agreed new terms for the takeover of Post unit Deutsche Postbank (DPBGn.DE), speeding up the deal and giving Post a temporary stake in Germany's biggest lender.

The transaction, valued at $6.5 billion, also allows Deutsche Bank to pay part of the takeover using its own shares, helping it preserve precious capital as the banking sector struggles through the worst financial crisis in decades.

In return Deutsche Post, in which the German government holds a stake of more than 30 percent, will receive payment for its 62 percent stake in Postbank earlier than planned, money it can use elsewhere in its logistics empire.

Post will get a temporary stake of around 8 percent in Deutsche Bank, which revealed on Wednesday it would post a record loss in 2008.

The losses again underscore the risks of executing major banking takeovers amid the financial sector turmoil. Commerzbank (CBKG.DE) renegotiated terms in its acquisition of Allianz's (ALVG.DE) Dresdner Bank, which it completed this week.

The cash value of the Postbank transaction is 4.9 billion euros (4.4 billion pounds), the banks said. Shares in all three fell after terms of the deal were announced on Wednesday.

"Investors had been hoping that the deal might speed up a possible transfer of Postbank shares into Deutsche Bank shares or that Deutsche Bank would have to make a mandatory bid for Postbank soon," a local trader said.

"As it stands now, Deutsche will not have to make an offer for Postbank for three years."