Commerzbank official rejects UniCredit CEO's calls for renewed talks
Commerzbank and UniCredit: Tensions Rise Over Merger Talks
By Tom Sims
FRANKFURT, May 7 (Reuters) - A senior Commerzbank official on Thursday rejected calls by UniCredit CEO Andrea Orcel to resume merger talks, as a battle for ownership of the big German bank intensifies.
Sascha Uebel, the bank's vice chairman and head of the works council, also said he would favour a move by the German government to increase its stake in Commerzbank to fend off a takeover.
Commerzbank's Response to UniCredit's Overtures
Uebel said in a written statement of Orcel: "I've really had enough now! Where on earth are we? In the midst of a hostile takeover bid, he is now demanding that the board speak with him again, otherwise he won't raise his offer?"
'WE MUST NOT ENTRUST OUR BANK' TO ORCEL, SAYS UEBEL
For months, the Italian and German banks have been in a standoff, pitting Orcel and his expansion plans against a German lender that is critical for the financing of Europe's largest economy.
"This is the board of a German DAX company, not circus ponies in a ring. We MUST NOT entrust our bank to someone like that," Uebel said in his statement to Reuters.
Background and Recent Developments
Uebel's comments were in response to remarks by the UniCredit CEO, reported by Boerse Online on Wednesday, that the Italian was open to reviewing the terms of his offer for Commerzbank should the German bank's management "engage in a constructive, detailed dialogue."
UniCredit, which has become Commerzbank's largest shareholder, has argued that Commerzbank is not living up to its potential and that Europe would benefit from bigger banks in a world of chaotic geopolitics. Commerzbank has vowed to remain independent. The leaders of the two banks talked earlier this year but discussions fell apart over Easter.
Orcel has been pursuing Commerzbank since 2024, building up a nearly 30% stake in it as German Chancellor Friedrich Merz and the bank's CEO Bettina Orlopp sounded the alarm on what they describe as a hostile move.
Commerzbank's Strategy and Government Involvement
COMMERZBANK TO PITCH VALUE OF INDEPENDENCE TO INVESTORS
Earlier this week, UniCredit launched its cross-border takeover attempt at a lowball price of 37 billion euros ($43.56 billion).
On Friday, Commerzbank will publish an updated strategy that its managers hope will convince investors of the value of its independence. The bank will announce cost cuts that will likely include plans to trim staff, a third round of cuts this decade.
Potential Government Actions and Political Implications
Uebel said he would back Berlin increasing its 12% stake in Commerzbank to undo the government's botched sale of part of its holding in 2024 that resulted in UniCredit building its stake in the first place. Reuters reported on Wednesday that some politicians were considering such a step, though any move faces big hurdles.
"It is not the capital market that elects the federal government, but we, the workers. In any case, it is important under no circumstances to accept the offer," Uebel said.
($1 = 0.8494 euros)
(Reporting by Tom Sims; Editing by Friederike Heine and Joe Bavier)