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UPDATE 1-Deutsche Bank, Kirch offered arbitration

Published 09/03/2009, 10:57 AM
Updated 09/03/2009, 11:03 AM
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* Munich court invites Deutsche, Kirch to arbitration

* Kirch agrees to take part; Deutsche has not yet responded

(Adds detail, background)

FRANKFURT/MUNICH, Sept 3 (Reuters) - Deutsche Bank AG and media mogul Leo Kirch have been asked to take part in an arbitration process, potentially setting the stage for resolving one of the most bitter disputes in corporate Germany.

Leo Kirch has agreed to a request made by a Munich court to take part in the process, a spokesman for Kirch said on Thursday.

Deutsche Bank said it has been asked to enter the arbitration procedure but has yet to respond to the request.

The arbitration procedure will seek to resolve a legal dispute surrounding PrintBeteiligungs GmbH, one of the main companies of the now collapsed Kirch media empire.

Leo Kirch is seeking billions of euros in damages from Deutsche Bank and its former chairman Rolf Breuer, alleging a statement made by Breuer to Bloomberg Television on Feb. 2, 2002 regarding the Kirch Group was in breach of laws and resulted in financial damage.

Kirch holds Deutsche Bank responsible for the collapse of his media empire and has launched suits in the United States and in several different courts in Germany seeking to recoup some of his losses.

Deutsche Bank said it remains confident it could win a legal case against Kirch should legal proceedings continue without being resolved. (Reporting by Philipp Halstrick and Peter Maushagen; Writing by Edward Taylor; Editing by David Holmes)

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