Commerzbank and UniCredit to meet as takeover prospects loom | Real Time Headlines

Commerzbank and UniCredit Bank Negotiations are set to begin on Friday, with the German lender on the defensive over a potential takeover after the Italian bank unexpectedly increased its stake earlier this month.

Incoming Commerzbank Chief Executive Bettina Orlopp said on Thursday that the two banks would “exchange views” on Friday, Reuters reported. Speaking at a financial conference, Orlop said the German bank was open but needed to consider the speed and risks of synergies.

UniCredit took action earlier this month 9% equity At Commerzbank, before looking Increase it to 21% Earlier this week, he proposed a stake in the German bank of up to 29.9%, hinting at a potential takeover bid. The action surprised the German government and Commerzbank management, which also hold shares in the bank.

According to Reuters, Alllop said on Thursday that she would not participate in “crazy” selling or “something stupid.”

Orlop, a 10-year veteran of Commerzbank, was announced on Tuesday. incoming CEOreplacing Manfred Knof Leave the bank The end of this month.

Her comments on Thursday came as the bank’s board of managing directors and supervisory board unanimously expressed support for Commerzbank’s current strategy at their annual meeting. Germany’s second-largest bank said on Thursday statement Implementation of its strategic plan to 2027 is “progressing rapidly”.

“Commerzbank is continuously expanding its independent position as a strong pillar of the German banking market and a reliable partner for the domestic economy,” said Supervisory Board Chairman Jens Weidmann.

The statement also noted that the Board of Managing Directors currently expects the bank’s return on tangible equity and shareholder dividends to be higher than currently expected.

The possibility of an acquisition or merger has been met with opposition from all sides german government and several senior figures at Commerzbank. Supervisory Board Member of the Week Stefan Wittmann told CNBC He hopes a hostile takeover can be avoided and says if that comes to pass, it could lead to massive job losses.

However, some investors have said in recent days that they are open to talks about a potential merger.

Orlop himself Commerzbank told reporters earlier this month that the process had taken Commerzbank by surprise but urged calm.