Citigroup, JP Morgan and Morgan Stanley have taken a big hit after bidding aggressively for a €4bn ($4.9bn) Deutsche Telekom trade and failing to place all of the shares and the majority of warrants, according to rival bankers.

The three banks were joint bookrunners of the sale after winning an auction from Kreditanstalt für Wiederaufbau, the German state-owned development bank, on Sunday. Bankers believe nine others missed out in the auction.