The large Italian bank UniCredit surprisingly follows the German competitor Commerzbank. The Italians acquired nine percent of the second-largest listed German financial institution on Wednesday and have shown interest in a greater involvement.
A takeover by Bank Austria’s parent company could create a giant that would reach a market value of almost 74 billion euros and would rank second in Europe after Britain’s HSBC.
Commerzbank reacted cautiously. According to an insider, it wants to ward off a possible takeover. While the share prices of both banks rose and economists welcomed the move, German workers threatened to resist.
Shortly before that, Commerzbank CEO Manfred Knof had announced his departure next year. UniCredit said it would discuss options with Commerzbank to increase shareholder value for both banks. If necessary, regulatory approval will be obtained for a possible increase in the stake to over 9.9 percent.
Commerzbank reacts cautiously
UniCredit CEO Andrea Orcel wants to explore a merger with Commerzbank, according to an insider. He invited the German rival’s board of directors for merger talks on Wednesday, a person familiar with the matter told Reuters.
Commerzbank simply announced that it had taken note of the report and that it was leaving its further action open: “The Board of Directors and the Supervisory Board of Commerzbank will continue to act in the best interests of all our shareholders, as well as employees and customers.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
