Qatar resists bank merger

Deutsche Bank is facing resistance from top Qatari shareholders to its planned merger with Commerzbank. The investors are concerned that a deal would dilute their holdings, if Deutsche Bank is forced to raise equity in a share sale to help fund the deal, sources said. The Persian Gulf nation is also seeking to negotiate other concessions, before it backs the deal, they said.

Deutsche Bank shares have slumped by about two thirds since Qatar first invested, five years ago. The discontent among key shareholders adds to widening opposition to the deal, which Germany sees as a way to ensure financing to the country’s export-oriented economy during a downturn.