Cerberus Scales Back Losing Deutsche Bank, Commerzbank Bet (2)

One of the biggest shareholders in German banking giants is scaling back an investment that hasn’t panned out in the last four years.

Cerberus Capital Management is selling shares in Deutsche Bank AG and Commerzbank AG worth about 450 million euros ($509 million), according to terms seen by Bloomberg. The U.S. buyout firm is selling about a third of its holding in Deutsche Bank and a slightly higher amount in its rival.

The shares of both banks fell Tuesday, with Commerzbank declining as much as 3.3% and Deutsche Bank as much as 2.3%.

Cerberus acquired stakes in Germany’s largest ...