German Finance Minister Invites UniCredit CEO for Commerzbank Takeover Talks
Background and Developments in the Commerzbank Takeover Bid
(Removes extraneous characters in paragraph 1, no further changes to the text)
By Christian Kraemer
Initial Engagement Between German Government and UniCredit
BERLIN, Aug 26 (Reuters) - German Finance Minister Lars Klingbeil plans to meet UniCredit CEO Andrea Orcel, government sources told Reuters, in a first sign that Berlin is willing to engage directly with the Italian bank over its Commerzbank bid.
Klingbeil has invited Orcel to a meeting at the finance ministry in Berlin on Sept. 14, the sources said on Wednesday.
German Government’s Position and Commerzbank’s Role
The minister will outline the German government's position in talks with Orcel and emphasize Commerzbank's role in financing the German economy, and its importance to Frankfurt as a financial centre, according to the sources.
Ongoing Talks Between Banks
"This complements the talks between the two banks, which remain responsible for discussing the way forward directly," one source added.
Berlin had previously insisted that UniCredit and Commerzbank hold direct talks before it engaged with the Italian lender.
Commerzbank’s Response and Shareholder Dynamics
Commerzbank's campaign against a UniCredit takeover faded in July after the Italian lender accumulated a stake of up to 49.65%, which is sufficient to determine shareholder resolutions.
The German government, which still holds just over 12% in the Frankfurt-based lender following its rescue during the global financial crisis, had long resisted a takeover, as had Commerzbank management.
Supervisory Board Chair’s Perspective
Commerzbank's supervisory board chair, Jens Weidmann, said on Sunday Berlin should retain its Commerzbank stake for now, despite the holding having originated in a rescue package during the global financial crisis.
Reactions from UniCredit and German Government
Orcel's approach had been described by the German government as hostile and aggressive. The UniCredit CEO, for his part, had pushed for talks with the German government and employee representatives.
(Reporting by Christian Kraemer, writing by Maria Martinez, editing by Kirsti Knolle)
