Commerzbank and UniCredit hold talks as takeover prospect looms

Commerzbank and UniCredit began first talks Friday, pinch nan German slope connected nan protect complete a imaginable takeover aft its Italian counterpart unexpectedly accrued its liking earlier this month.

The discussions, which included incoming Commerzbank Chief Executive Bettina Orlopp, were held complete Zoom and ended early day section clip connected Friday, Reuters reported, though nary result was instantly apparent.

Orlopp connected Thursday said nan 2 banks would "exchange views" Friday, Reuters reported. Speaking astatine a financial conference, Orlopp said nan German slope was unfastened minded, but that nan velocity of synergies and risks needed to beryllium considered.

UniCredit earlier this period took a 9% stake successful Commerzbank, earlier looking to boost it to 21% earlier this week and putting successful a petition to clasp arsenic overmuch arsenic a 29.9% liking successful nan German bank, hinting astatine a imaginable takeover bid. The action took nan German government, which besides owns a liking successful nan bank, and nan guidance of Commerzbank by surprise.

Orlopp said Thursday she would not get progressive pinch "crazy" sell-downs aliases "stupid things," according to Reuters.

A 10-year seasoned of Commerzbank, Orlopp was announced Tuesday arsenic nan incoming CEO, replacing Manfred Knof who is group to leave nan bank astatine nan extremity of this month.

Her comments connected Thursday came arsenic nan bank's committee of managing board and supervisory committee unanimously said they supported Commerzbank's existent strategy astatine an yearly meeting. Germany's second-largest lender said successful a Thursday statement that nan implementation of its strategy plans until 2027 was "progressing rapidly."

"Commerzbank is continuously expanding its independent position arsenic a beardown pillar successful nan German banking marketplace and a reliable partner to nan home economy," Jens Weidmann, president of nan supervisory board, commented.

The connection besides noted that nan committee of managing board was now expecting nan bank's return connected tangible equity and payouts to shareholders to beryllium bigger than truthful acold anticipated.

The imaginable for a takeover aliases merger has been met pinch guidance from Germany's government and respective elder figures astatine Commerzbank. Supervisory committee personnel Stefan Wittmann this week told CNBC he hoped a dispute takeover could beryllium avoided, and said awesome occupation losses could hap if it became a reality.

Some investors nevertheless person successful caller days suggested they would beryllium unfastened to talks astir a imaginable merger.

Orlopp herself earlier this period told journalists that nan process had taken Commerzbank by surprise, but urged a calm approach.