In the realm of finance, George Clooney is confronting Commerzbank
Italian businessman Andrea Orcel embodies the stereotype of a relentless investment banker. Despite multiple billion-dollar setbacks, he remains undeterred in his pursuit of leading one of Europe's most valuable banks, even if it means trouble for Commerzbank. His university thesis topic seems to foreshadow future issues with the German bank.
Andrea Orcel is not known for forming close relationships. Instead, he cultivates the image of a stern manager, maintaining the persona of a stereotypical investment banker and successful entrepreneur, even during times of financial struggle.
Born in Rome, Orcel earned a reputation as a "deal junkie" and is affectionately referred to as "the shark of finance" and "George Clooney of banking." The New York Times simply calls him "Europe's most notorious investment banker." For the past three years, the 61-year-old has served as CEO of Italy's second-largest bank, UniCredit, which may soon merge with Commerzbank, making him the architect of one of Europe's largest banking mergers.
€25 million golden handshake
Raised in a middle-class family in Rome, Orcel studied economics at "La Sapienza" University in his hometown before earning his master's degree at the prestigious INSEAD business school. At 25, Orcel left for London to work for Goldman Sachs, then moved on to Paris for Boston Consulting. In the early 1990s, the Italian joined Merrill Lynch, holding various leadership roles. After a stint at the Royal Bank of Scotland, he took on a position at Swiss bank UBS in 2012 as head of investment banking, accepting a €25 million signing bonus.
As the head of Europe's most expensive bank bailout during the financial crisis, Orcel's reputation seemed to remain unscathed. He advised the Royal Bank of Scotland to acquire Dutch bank ABN Amro just before the crisis - then the costliest bank takeover ever. When markets crashed shortly after, British taxpayers were left to pay a £45 billion bill to rescue it.
True to form, Orcel dismissed the criticism and continued to put his interests first. In 2018, he was slated to become CEO of Spanish bank Santander, but disagreements over terms ultimately prevented him from taking the role. Nevertheless, he walked away with a €51 million payout from UBS.
Did the German government lose control?
In 2021, Orcel returned to Italy as CEO of UniCredit, which has a market capitalization of €60 billion, making it one of Europe's most valuable banks. It's worth more than Commerzbank (€18.5 billion) and Deutsche Bank combined (€29 billion) and reported €8.6 billion in profit last year. UniCredit has owned German bank Hypovereinsbank since 2005, and its next target may be Commerzbank, making it Germany's second-largest private bank.
Acquisition rumors have circulated since Orcel's appointment, but it was only last summer that he began increasing his institution's stake in Commerzbank - surprising the German government last week with the purchase of 4.5 percent of the shares offered for sale by the federal government. UniCredit now owns a total of 9 percent of Commerzbank and has expressed interest in acquiring more shares. Only the German government holds more shares in Commerzbank with 12 percent.
Reports in the "Financial Times" suggest that the German government was advised by US bank JP Morgan Chase in the sale of its 4.5 percent stake, which may have encouraged UniCredit's bid. However, top German officials claimed to have only learned of UniCredit's interest and existing stake in Commerzbank on the evening of the sale. "At the time when the bookbuilding process became irreversible, the Federal Ministry of Finance was not aware that Unicredit held further shares in Commerzbank," the ministry told the newspaper. Top German officials now appear to be frustrated with the outcome of the sale, with one official stating that UniCredit's actions were perceived as "highly unfriendly behavior."
Orcel denies these accusations in an interview with the "Handelsblatt." "We were contacted by representatives of the Federal Ministry of Finance and their advisors at working level before the auction of the 4.5 percent state share package," he says. "During the auction of the federal share, the finance agency then collected offers from various investors and ultimately chose ours. All parties involved were aware that our share would thereby increase to 9 percent and what implications that has." Orcel maintains that UniCredit's interest in Commerzbank has been known to all relevant parties in Germany for a long time, which is why they were contacted in the first place.
Orcel prefers to keep his personal matters tucked away and maintains a low profile on social platforms. Since 2009, he's been hitched to interior designer Clara Batalim-Orcel and shares a child with her.
Should a Commerzbank takeover occur under his guidance, it would essentially seal the deal: Orcel wrote his undergraduate thesis on bank hostile takeovers.
The Italian economy, as represented by UniCredit under Orcel's leadership, is significantly valuable, with a market capitalization of €60 billion, making it one of Europe's most valuable banks. Andrea Orcel, the CEO of UniCredit, is pursuing a potential acquisition of Commerzbank, which could make UniCredit Germany's second-largest private bank.
Orcel's academic background in economics and his thesis on bank hostile takeovers could potentially influence the potential acquisition of Commerzbank, bringing significant changes to the German economy.
