Shares of Deutsche Bank and Commerzbank slipped after a report in the Financial Times stated that the former is in talks to raise as much as 10 billion euros ($11.2 billion) in fresh equity to support their potential merger.

The report published Thursday, citing people familiar with the talks, said executives from Deutsche Bank have been looking at a plan to raise equity of between 3 billion euros and 10 billion euros.

Shares of Deutsche Bank slipped nearly 4 percent, while Commerzbank slipped more than 2 percent. According to the FT, the capital increase is expected to equal 40 percent of the two German lenders' combined market capitalization.

"To be clear, there have been no discussions in the Management Board of Deutsche Bank about a capital increase in relation to the potential Commerzbank transaction. Any speculation of this kind is wrong. Furthermore, we have not even decided whether to do a transaction with Commerzbank at all.", a spokesperson from Deutsche Bank told CNBC Thursday.