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Citi and Deutsche left holding stake in large block trade

Banks took on €1.2bn stake in German lighting group Osram Licht but have failed to sell it all after share price drop

Citi and Deutsche left holding stake in large block trade
Photo: Getty Images

Citigroup and Deutsche Bank have been left holding a sizeable stake in German lighting group Osram Licht after a block trade deal turned sour, according to people with knowledge of the matter.

The news highlights the dangers of block trade bidding by banks, which offer competing purchase prices to win the deal but can see them struggling to make a profit if they buy at the wrong price.

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