Coba is shifting towards a defensive strategy – Goldman Sachs is offering assistance
It's being whispered in the finance world that Commerzbank is looking to safeguard its independence from potential takeover attempts by UniCredit, Italy's banking behemoth. A source in the know confirmed that the German bank's top brass has been brainstorming strategies to preserve its independence. Two other sources likewise claimed that Commerzbank is open to negotiations if UniCredit makes an official bid, but the board is intent on staying autonomous. Rumors are also circulating that Commerzbank has enlisted Goldman Sachs to help explore defensive maneuvers. Commerzbank refused to comment on the matter.
UniCredit caught everyone off guard when it snatched up a 9% stake in Commerzbank, suggesting a deeper investment might be on the horizon. The Italians, better known as HypoVereinsbank in Germany, went halfsies on this acquisition with the German government, which has been gradually detaching itself from the bank. The government now owns a 12% stake, but a 90-day restriction now applies to any subsequent sale of Commerzbank shares. The transaction was finalized at a price of €13.20 per share, totaling €702 million.
Both banks' stocks soared after the announcement, and economists hailed the move as beneficial. However, German labor unions voiced their concerns and threatened resistance. This development followed Commerzbank CEO Manfred Knof's announcement that he'd be stepping down in 2023. UniCredit revealed its intent to investigate ways to create value for both banks' shareholders and, if necessary, seek regulatory approval to boost its stake beyond 9.9%.
An insider spilled the beans that UniCredit CEO Andrea Orcel is contemplating a merger with Commerzbank. According to a well-placed source, Orcel has extended an invitation to the German bank's management team to discuss a possible amalgamation. If successful, this merger could yield a banking conglomerate with a market value of nearly €74 billion, making it the second-largest in Europe, trailing only Britain's HSBC.
The Commission, in light of the potential merger between Commerzbank and UniCredit, might consider adopting implementing acts to ensure compliance with any applicable regulations. To safeguard its interests, Commerzbank could employ the rules outlined in the implementing acts when engaging in negotiations with UniCredit.
