Commerzbank leaders, staff and investors round on UniCredit takeover bid
Resistance to UniCredit's Takeover Attempt at Commerzbank Shareholder Meeting
By Tom Sims and Philipp Krach
Shareholder Meeting Highlights
WIESBADEN, Germany, May 20 (Reuters) - Commerzbank employees and executives, as well as some investors, criticised UniCredit's takeover attempt on Wednesday at the start of the German bank's shareholder meeting, maintaining a wall of resistance to the cross-border deal.
The barrage of support for an independent Commerzbank comes at a critical juncture in a months-long battle after Italy's UniCredit launched a bid last month that was formally rejected by Germany's second-largest bank this week.
Investor Reactions and Concerns
Andreas Thomae of Deka Investment called UniCredit's offer "unattractive" and warned that its plans could bog Commerzbank down for years "with the risk of losing its customer focus".
"The voluntary exchange offer is currently not an option," he told Commerzbank's annual shareholder meeting.
Background of the Takeover Bid
It is the second shareholder meeting for Commerzbank since UniCredit, under CEO Andrea Orcel, began buying Commerzbank shares, building up an equity stake of nearly 30% since 2024.
Commerzbank formally rejected UniCredit's offer as risky and too low on Monday, a stance that was underscored by CEO Bettina Orlopp in her address to shareholders.
"Losses in revenue are significantly underestimated, the potential for cost savings is viewed too optimistically, and restructuring expenses would be significantly higher," she said.
Employee and Union Responses
Dozens of employees, blowing whistles and many dressed in corporate yellow, gathered before the AGM with signs reading "UniCredit go away!" and "#NOMerger #NOrcel".
Orcel has argued Commerzbank has not been living up to its potential and that Europe would benefit from bigger banks in an era of uncertain geopolitics.
"We are deeply concerned that if his plans go through, they will not be strategically sound, they will lead to job losses, and they will also threaten German small and medium-sized businesses," Frederik Werning, a union official and Commerzbank supervisory board member, told Reuters.
Potential Impact on Jobs and Future Negotiations
Commerzbank has estimated a takeover could result in the loss of 11,000 full-time jobs, nearly a third of the workforce."Our recommendation is clear: Do not accept UniCredit's offer," Chairman Jens Weidmann said to applause at the AGM. Orlopp said before the meeting that Commerzbank's demands need to be taken into account for any future talks about a tie-up with UniCredit. Those include a premium for shareholders and recognition of the strengths of its business model.
UniCredit's Position and Investor Outlook
UniCredit did not participate in the meeting, opting instead for a back seat as the battle heats up. "One thing is clear to us: UniCredit isn't going to give up. It has the necessary resources and time," said Hendrik Schmidt of Commerzbank investor DWS.
(Reporting by Tom Sims; Additional reporting by Timm Reichert, Editing by Louise Heavens and Alexander Smith)
