Cleary Gottlieb Steen & Hamilton has landed a key assignment thanks to Deutsche Bank’s decision to seek $11 billion in new capital in order to bolster its balance sheet ahead of European stress tests while expanding its U.S. investment banking operations.
Cleary, which has offices in Frankfurt and Cologne, is advising Deutsche Bank on a fundraising plan announced Sunday under which the financial services company’s existing shareholders will participate in an $8.6 billion rights issue. Separately, Paramount Holdings Services Ltd., an investment vehicle owned by Sheikh Hamad bin Jassim bin Jabr Al-Thani of the Qatari royal family, will pay $2.4 billion in exchange for 60 million shares in the Frankfurt-based banking giant.
Cleary capital markets partners Ward Greenberg and Hanno Sperlich in Frankfurt are advising Deutsche Bank on the matter, along with finance partner Raj Panasar, tax partners Daniel Weyde and Richard Sultman, tax counsel S. Douglas Borisky and senior regulatory attorney Michael Kern. Cleary associates Yoseph Choi, Ryan Citlau, Jens Hafemann, Matt McFeely, Felix Muller and Liz Pennell are also advising. (As The Am Law Daily reported in 2009, Panasar, who made partner at Cleary in 2007, is not a fan of out-of-office email messages at the firm.)
Deutsche Bank has turned to Cleary for counsel on a variety of past matters, including a $4.15 billion capital increase a year ago this month, a $1.5 billion notes offering and an $800 million financing for mortgage and mezzanine loans on a Manhattan office building late last year.
The Am Law Daily reported last week on Skadden, Arps, Slate, Meagher & Flom’s role representing Deutsche Bank on the $1.73 billion sale of The Cosmopolitan resort and casino in Las Vegas to private equity firm The Blackstone Group. The casino sale is part of a plan by the German bank to divest itself of noncore assets and boost its Tier 1 capital ratio.
Former SEC enforcement official Richard “Dick” Walker has served as Deutsche Bank’s group general counsel since 2001. Deutsche Bank stood by Walker earlier this year after the in-house legal chief was criticized for the bank’s handling of rate-rigging investigations and civil litigation in the U.S. related to mortgage-backed securities.
Mathias Otto, deputy general counsel for Deutsche Bank’s German and Eastern European division, and managing director and senior counsel Volker Butzke and managing director and associate general counsel Andreas Meyer are leading an in-house team advising on the rights issue, according to German legal publication Juve, which notes that Davis Polk & Wardwell and leading German firm Hengeler Mueller are advising underwriters on the offering.
The identities of Paramount’s legal advisers were not immediately available Monday. The Financial Times and Forbes report that other entities linked to Qatari royalty own stakes in global banking giants Bank of America, Barclays and Credit Suisse.