Commerzbank shares dip on capital hike talk-traders

FRANKFURT, March 29 (Reuters) - Shares in Commerzbank were down 3.8 percent at the bottom of the German blue chip index on Tuesdays as traders pointed to talk of a capital increase for between 5.25 euros ($7.41) to 5.30 euros per share.

'There is chatter going round about Commerzbank's capital hike at a level of 5.25-5.30 euros per share,' one traders said.

Another trader pointed to the same rumour as an explanation for the shares drop.

Commerzbank shares were trading at 5.53 euros by 0751 GMT.

The bank declined to comment on Tuesday.

In January Commerzbank said they would not launch a capital increase during the first quarter. (Reporting by Harro ten Wolde and Kirsti Knolle) ($1=.7084 Euro) Keywords: COMMERZBANK/ ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.