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Germany's Kirsch to file €1.6 bln claim against Deutsche Bank

Former German media mogul Leo Kirch will file his long-awaited €1.6 billion ($2.16 billion) damage claim against Deutsche Bank AG at the beginning of the week with a regional court in Munich, a spokesman for Kirch told news agency AP on Saturday, confirming a report in weekly magazine Der Spiegel.

Kirch's former media empire collapsed in 2002 after a television interview with Deutsche Bank's then CEO Rolf Breuer, in which Breuer uttered doubts about the financial well-being of the Kirch group. Kirch's lawyers argue the interview led to the eventual collapse of his businesses. Kirch, has lodged several lawsuits against Deutsche Bank after his businesses are by now almost entirely disbanded. In 2006, Germany's Federal Court had decided that Kirch in principle is entitled to damage claims from Deutsche Bank and Breuer, but had left it to lower courts to decide how much compensation Kirch may get. Kirch's spokesman also confirmed a report in weekly magazine WirtschaftsWoche and Sunday paper Frankfurter Allgemeine Sonntagszeitung, according to which a regional court in Frankfurt has decided that the election of former Deutsche Bank CFO Clemens Boersig to the bank's supervisory board is not valid. Kirch argues that the bank's annual general meeting, which approved the appointment in 2006, should have been informed about the business connections Boersig had with the Kirch group.

A spokesman for Deutsche Bank told WirtschaftsWoche it will appeal the court's decision as it believes the ruling "is not appropriate." However, the bank has put the election of Clemens Boersig to the supervisory board on this year's shareholder meeting agenda again. On Thursday, shareholders will then be asked again to confirm his election to the supervisory board. (marketwatch.com)