Commerzbank and UniCredit to meet as takeover prospects loom | Wilnesh News

Commerzbank UniCredit will begin talks on Friday, with the German lender on the defensive over a potential takeover after the Italian lender unexpectedly increased its stake earlier this month.

Incoming Commerzbank Chief Executive Bettina Orlopp said on Thursday that the two banks would “exchange views” on Friday, Reuters reported. Speaking at a financial conference, Orlop said the German bank was open but needed to consider the speed and risks of synergies.

UniCredit bought a 9% stake in Commerzbank earlier this month and then earlier this week sought to increase its stake to 21%, making a request to hold as much as 29.9% of the German lender. A possible takeover bid is suggested. The move surprised the German government and Commerzbank’s management, which also owns shares in the bank.

According to Reuters, Olop said on Thursday that she would not participate in “crazy” selling or “stupid things.”

Orlopp, a 10-year veteran of Commerzbank, was announced on Tuesday as the new CEO, succeeding Manfred Knof. Leave the bank The end of this month.

Her comments on Thursday came as the bank’s board of managing directors and supervisory board unanimously expressed support for Commerzbank’s current strategy at its annual meeting. Germany’s second-largest bank said on Thursday statement Implementation of its strategic plan to 2027 is “progressing rapidly”.

“Commerzbank is continuously expanding its independent position as a strong pillar of the German banking market and a reliable partner for the domestic economy,” said Supervisory Board Chairman Jens Weidmann.

The statement also noted that the Board of Managing Directors currently expects the bank’s return on tangible equity and shareholder dividends to be higher than currently expected.

The possibility of a takeover or merger has been opposed by the German government and several senior figures at Commerzbank. Supervisory board member Stefan Wittmann told CNBC this week that he hoped to avoid a hostile takeover, saying it could lead to massive job losses if this materialized.

However, some investors have said in recent days that they are open to talks about a potential merger.

Orlop himself told reporters earlier this month that the process had taken Commerzbank by surprise but urged calm.