Leo Kirch’s heirs are threatening to extend legal action against Deutsche Bank AG (DBK) if the bank doesn’t pay damages of 812 million euros ($1.1 billion) under a proposed settlement, Sueddeutsche Zeitung said, citing negotiators it didn’t identify.

Deutsche Bank is balking at the amount, meaning the settlement proposed by a Munich court may collapse, the Munich- based newspaper said in an e-mailed article to appear in tomorrow’s edition.

To contact the reporter on this story: Tony Czuczka in Berlin at aczuczka@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net