Commerzbank Rejects UniCredit's 39 Billion Euro Bid, Warning of 11,000 Job Cuts
Updated
Updated · Reuters · May 18
Commerzbank Rejects UniCredit's 39 Billion Euro Bid, Warning of 11,000 Job Cuts
11 articles · Updated · Reuters · May 18
Commerzbank's supervisory and management boards told shareholders to reject UniCredit's nearly 39 billion euro exchange offer, issuing their first formal recommendation against the bid.
A 137-page analysis said the offer undervalues Commerzbank, lacks an adequate premium and is too vague, while CEO Bettina Orlopp called it a restructuring plan that would damage the bank's profitable model.
Commerzbank also warned a takeover could eliminate up to 11,000 full-time jobs and expose investors to UniCredit's Russia risks and large holdings of Italian government bonds.
UniCredit, already Commerzbank's largest shareholder with a stake close to 30%, said many of the bank's claims were unfounded and promised a fuller response.
The clash sets up a tense annual shareholder meeting on Wednesday and extends a takeover battle that began in 2024 as UniCredit built its stake in the German lender.
Will Berlin block the takeover, prioritizing national interest over European banking consolidation?
Can Commerzbank's ambitious solo strategy truly fend off UniCredit's vision for a European banking giant?