(Bloomberg) -- Elliott Investment Management is receiving nearly €200 million ($222 million) from Deutsche Bank AG as the German lender moves to resolve a long-running legal dispute, people with knowledge of the matter said.
The activist hedge fund was the largest plaintiff in the litigation against Deutsche Bank over its Postbank takeover, which took place more than a decade ago, according to the people. It’s now set for a payday after settling with the German lender, the people said, asking not to be identified because the information is private.
Deutsche Bank said late Wednesday it reached settlements with plaintiffs representing almost 60% of the total claims. The average settlement amount would consume about 45% of the total provisions that Deutsche Bank had booked for the cases, it said.
The news came just in time for the birthday of Paul Singer, Elliott’s billionaire founder, who turned 80 on Thursday.
The Postbank litigation has been hanging over Deutsche Bank since 2010, when it took full control of the German retail lender. The claimants — former investors in Postbank — were seeking a higher price than the €25 per share that they received.
A representative for Elliott didn’t immediately respond to a request for comment, while a spokesperson for Deutsche Bank declined to comment. Frankfurter Allgemeine reported earlier that Elliott was settling, without further details.
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