German bank Commerzbank has rejected a takeover bid from UniCredit. It accused the Italian banking house of hostile tactics and misleading claims. Reuters reports that the strongly worded statement is a response to UniCredit’s earlier comments on the business and management of Germany’s second-largest bank.
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UniCredit vs. Commerzbank
“We are astonished that it took UniCredit more than 18 months to present a one-sided plan that lacks a basic understanding of the driving forces behind our business model, despite regular meetings with investors during this period,” said Commerzbank CEO Bettina Orlopp. UniCredit holds a significant stake in Commerzbank and intends to purchase additional shares. Its CEO, Andrea Orcel, sharply criticized the Frankfurt-based bank’s financial results during a conference call with analysts today.
“Commerzbank’s history is one of consistently below-average operating results,” Orcel said. According to him, until 2025, the bank merely masked structural weaknesses in its core German business thanks to favorable conditions and relatively risky international growth. He said he would run it differently, undertaking a fundamental restructuring, and mentioned that he could lay off 7,000 of its full-time employees in Germany.
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UniCredit’s takeover push meets resistance
UniCredit already operates in the German banking market through its subsidiary HypoVereinsbank (HVB). It has been seeking to acquire Commerzbank for some time. However, the Italian banking group is facing resistance from Commerzbank’s management, its employees, unions, and local state and federal governments. German Chancellor Friedrich Merz also commented on the situation today.
“Yes, we need large banks in Europe, but allow me to make one thing absolutely clear in light of recent events: that does not mean that every form and type of takeover is welcome in Germany. We strongly reject hostile and aggressive tactics,” Merz said, according to Reuters, at a banking event.
Source: Reuters
