Sept 5 Reuters Deutsche Bank has reached a settlement in its longestrunning litigation over its 2008 takeover of Postbank, it said on Thursday.

The settlement with German investment company Effecten Spiegel includes an additional payment of 36.50 euros 40.53 per share on the thentakeover offer price as proposed by the bank, Deutsche Bank added in a statement.

Shares in Germany39;s largest bank rose to a day39;s high and were up 3 at 1127 GMT.

The bank said in August that it had reached settlements with more than half the plaintiffs, including the largest individual one, who accused the lender of underpaying in the acquisition of Postbank.

The bank also said it would reduce by 430 million euros the provisions it had set aside for potential future payouts, which will have a positive impact on thirdquarter earnings.

In April, the bank said the total amount of the provisions could be up to the estimated full amount of claims of approximately 1.3 billion euros.

Deutsche embarked on its Postbank acquisition during the 2008 global financial crisis. Postbank, with millions of customers, has its roots in Germany39;s postal system.

The deal aimed to broaden Deutsche39;s reach in Germany and provide a steady domestic income stream after years of rapid international expansion, but Postbank became a source of consumer complaints, regulatory scrutiny and costly lawsuits.

EffectenSpiegel was the first of many to sue Deutsche Bank and for years was the sole plaintiff, saying in…