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Commerzbank's designated CEO meets UniCredit in first talks, sources say

Published 09/27/2024, 02:10 AM
Updated 09/27/2024, 10:25 AM
© Reuters. FILE PHOTO: Unicredit credit cards are seen in front of a displayed Commerzbank logo in this illustration taken September 20, 2017. REUTERS/Dado Ruvic/Illustration/File Photo
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By Tom Sims

FRANKFURT (Reuters) -Commerzbank's designated CEO Bettina Orlopp met with bankers from UniCredit virtually on Friday morning, two people with knowledge of the matter told Reuters, as the German bank kicked off talks with its Italian suitor.

Italy's no 2 bank is pressing for a tie-up after snapping up a stake earlier this month while Germany's no 2 bank is honing its defence as it pursues a strategy of independence.

It was not immediately clear which executives from UniCredit were present.

Orlopp, who was appointed the bank's new CEO earlier this week, told a financial conference in London on Thursday that the two banks would meet to "exchange views" now that UniCredit was a shareholder.

UniCredit caught Commerzbank (ETR:CBKG) off guard when it scooped up a 9% stake, saying it planned to buy more shares if it got regulatory clearance while pressing for discussions to explore a tie-up.

Shares of Commerzbank traded 0.5% higher in Frankfurt, after a nearly 7% gain on Thursday, while UniCredit was 0.8% lower after a nearly 5% gain on Thursday.

Commerzbank's shares have risen around 30% since UniCredit disclosed its stake.

UniCredit's move is the most ambitious attempt yet at a pan-European bank merger but it faces considerable political hurdles in Germany ahead of national elections.

Commerzbank's management, employees and the nation's chancellor, Olaf Scholz, have all voiced opposition to a potential takeover, but at least one big investor and some business leaders favour talks.

Orcel, who has long held an interest in a tie-up with Commerzbank, this week said that it would be the best outcome.

Orlopp on Thursday said the bank was open-minded but that the speed of synergies and risks to executing any deal needed evaluation.

© Reuters. FILE PHOTO: Unicredit credit cards are seen in front of a displayed Commerzbank logo in this illustration taken September 20, 2017. REUTERS/Dado Ruvic/Illustration/File Photo

"Sometimes it makes sense, sometimes it doesn't make sense, and that is something we need to find out jointly," Orlopp said.

Bloomberg first reported Orlopp's participation in the meeting.

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