Germany’s largest bank has rejected the chance to resolve a 10-year dispute with the heirs of defunct media giant Kirch, after balking at the cost of the proposed €800 million out-of-court settlement.
London’s Financial Times reports that Deutsche Bank’s chief executive, Josef Ackermann, had made efforts to settle the case before his retirement in May. However, the board decided yesterday that the settlement would not be in the bank’s best interests.

Months in the making

Although Deutsche’s lawyers had spent months negotiating a deal, all board members rejected the proposal, according to the newspaper’s sources. Mr Ackermann abstained from voting.
The contentious case dates back to 2002, when Leo Kirch, who died last summer, suggested that a remark made Rolf Breuer, Deutsche’s then chief executive, had fatally damaged his media empire by questioning its creditworthiness.
Kirch Group, which was close to collapse, fell off the edge soon after the comments, provoking Mr Kirch into seeking damages amounting to at least €3.3 billion.

Criminal trial

The latest twist follows a series of high-profile events, including a criminal trial brought against Mr Breuer, which involved a raid on Deutsche Bank offices.
Mr Breuer settled that case, where he was accused of false testimony over the Kirch allegations, by paying €350,000, but he did not admit liability.