A branch of the bank Commerzbank AG, in the financial district of Frankfurt, Germany, Thursday, September 12, 2024.
Christian Bocsi Bloomberg Getty Images
Commerzbank and UniCredit began talks on Friday, with the German bank on the defensive over a potential takeover after its Italian partner suddenly increased its stake earlier this month.
The discussions, which included the attendance of Commerzbank Chief Executive Bettina Orlopp, took place on Zoom and ended late on Friday, Reuters reported, although no results were immediately apparent.
Orlopp on Friday said the two banks will “exchange views” on Friday, Reuters reported. Speaking at a financial conference, Orlopp said the German bank was open-minded, but the speed of synergies and risks had to be taken into account.
UniCredit earlier this month took a 9% stake in Commerzbank, before looking to boost it to 21% earlier this week and put in a request to hold as much as 29.9% stake in the German bank, hinting at a potential takeover bid. The move took the German government, which also owns shares in the bank, and Commerzbank’s management by surprise.
Orlopp said on Thursday he would not be involved in a “crazy” sale or a “stupid thing,” according to Reuters.
A 10-year veteran of Commerzbank, Orlopp was announced Tuesday as the incoming CEO, replacing Manfred Knof who is leaving the bank later this month.
His comments came on Thursday when the bank’s board of directors and supervisory board unanimously said they supported Commerzbank’s current strategy at their annual meeting. Germany’s second-largest lender said in a statement Thursday that implementation of its strategy plan through 2027 is “progressing rapidly.”
“Commerzbank is continuously developing its independent position as a strong pillar of the German banking market and a reliable partner for the domestic economy,” said Jens Weidmann, chairman of the supervisory board.
The statement also noted that the board of directors now expects a return on real equity and a payment to shareholders greater than currently anticipated.
The potential takeover or merger has been met with opposition from the German government and some senior figures at Commerzbank. Member of the supervisory board Stefan Wittmann this week told CNBC that he hopes a hostile takeover can be avoided, and said large job losses could happen if it becomes a reality.
But some investors have now suggested opening up discussions about a potential merger.
Orlopp himself earlier this month told reporters that the process has taken Commerzbank by surprise, but urged a calm approach.
