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Business Recorder
27-05-2025
- Business
- Business Recorder
UniCredit can let BPM bid lapse, but will hold onto Commerzbank, CEO says
MILAN: Italy's UniCredit is ready to let its offer for Banco BPM lapse, CEO Andrea Orcel said on Tuesday, but added the situation was different for Commerzbank where his bank owns a 28% stake and is prepared to wait. UniCredit built the stake in late 2024 and wants to merge its HVB business in Germany with the country's second-biggest bank, a plan that faces strong opposition in Berlin. UniCredit's offer for Italian rival Banco BPM is also in trouble after the government imposed conditions in order to clear it, which UniCredit has said could be harmful. It has filed a complaint with an Italian administrative court. The court decision, however, won't arrive in time, Orcel told the national assembly of Italy's FABI banking union, and UniCredit could just let the offer lapse because it is not financially advantageous on its current terms. The Banco BPM offer runs until July 23. Matters are different with Commerzbank. 'We have 30%. I'll repeat that: we have 30%. The fact that we're polite and fair people who are waiting for the right moment to engage with the German government doesn't change the fact that we have 30%,' Orcel said. UniCredit has appealed to court against Italy govt's terms on its Banco BPM bid, Repubblica says He reiterated that UniCredit had three options: keeping the stake, selling it at a profit, or starting talks for a full merger, which Orcel has said he will only pursue if all stakeholders support it. 'We're in no rush, we'll wait,' he said. Orcel, one of Europe's most experienced M&A bankers, has previously said a decision on what to do with the Commerzbank stake is a matter for 2026 or 2027. Asked if Commerzbank might pursue a merger with a domestic rival as a defence strategy against UniCredit, Orcel said this was a risk, but that Commerzbank shares were not attractive because of the built-in M&A premium. 'Commerzbank trades at a 30-40% premium on all the other European banks because of speculation,' he said. He added that any buyer would need to own two thirds or, more likely, three quarters of Commerzbank. 'So whoever that is, they'll have to come talk to us,' Orcel said.
France 24
15-05-2025
- Business
- France 24
Germany's Commerzbank staff protest UniCredit takeover threat
About 200 staff staged the demonstration outside the annual shareholders' meeting of Commerzbank in the German city of Wiesbaden, as the lender fights back against advances from its Italian peer. UniCredit has built up a hefty stake in Commerzbank since last year, sparking speculation it could seek to swallow up Germany's second-biggest lender, in a move that shocked Berlin's corporate and political elite. "We want to stay independent because we think it's better for us," said Christine Pfeiffenberger, 52, a bank employee who held a banner with the slogan "my heart beats in yellow" written in Italian. Another demonstrator, Denis Krutikov, 50, said shareholders "need to ask themselves if it is a good idea to merge with UniCredit whilst workers are against the idea". One protester, inspired by the Asterix comic series, was dressed as a Gallic warrior and held a sign showing someone being flattened by a menhir, the giant sculpted rocks that Asterix's companion Obelix carries around. Commerzbank has fought back fiercely against UniCredit's moves, and chief executive Bettina Orlopp told shareholders at Thursday's meeting that the group aimed to become a "key" European bank. Job cuts, share buybacks The bank last week reported its best quarterly profit since 2011 and has also announced thousands of job cuts and share buybacks in a bid to make itself more attractive to shareholders. The saga began in September when Italy's second-biggest lender revealed its had built up a stake in its German rival, triggering talk that CEO Andrea Orcel wanted to push for an ambitious pan-European banking merger. UniCredit has since boosted its holding via shares and derivatives to around 28 percent. It has also received the green light from regulators to buy up to 29.99 percent of Commerzbank, just below the level at which it would be required by law to make an offer for all of the bank. Financial news agency Bloomberg reported Wednesday that Orcel had written to new German Chancellor Friedrich Merz in a bid to start talks. But Merz has previously spoken out against UniCredit's moves. And Orcel has played down the prospect of mounting a takeover bid for Commerzbank soon, saying in March that he could wait until 2027 to determine whether it made sense. Commerzbank's shares have risen 60 percent since the start of the year, making any takeover more expensive, and might soon exceed the price the German government paid for its stake in 2008 during the financial crisis.
Yahoo
15-05-2025
- Business
- Yahoo
Commerzbank shareholders to discuss takeover plans
Takeover plans by UniCredit for Germany's Commerzbank are likely to be a central topic at the DAX-listed bank's annual general meeting on Thursday, even though the Italian bank's chief executive Andrea Orcel is not expected in person. For the first time since 2019, the shareholder meeting is taking place in person. Immediately before the start of the event in the western German city of Wiesbaden, the Commerzbank works council and the Verdi union plan to reaffirm their protest against what they describe as Italian bank UniCredit's "hostile" approach with a "dynamic works meeting." UniCredit took advantage of the partial exit by the German government from Commerzbank in September and is now its second-largest shareholder after the government. Through financial instruments, the Milan-based bank has secured access to a total of just over 28% of the shares. Orcel has been advocating for months to make Commerzbank a part of the Italian financial group. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
RTÉ News
12-05-2025
- Business
- RTÉ News
UniCredit raises profit outlook, says to be selective on deals
Italy's second-biggest bank UniCredit has strengthened its 2025 outlook after posting a surprise increase in first-quarter profit, and said it would pursue deals only if they further improved its "unmatched standalone case". CEO Andrea Orcel has placed UniCredit at the heart of the consolidation wave sweeping Italian finance, with a €14 billion all-share offer for rival Banco BPM and a 6.7% stake in insurer Generali, which UniCredit has said is a financial investment, the same as its 28% stake in Commerzbank. However, the offer for BPM hangs in the balance after Italy's government imposed strict conditions to clear it, which UniCredit said could be harmful to the bank. Plans for a Commerzbank takeover face strong opposition from the new German government and the strategy over Generali remains unclear. UniCredit said fee and trading income, as well as lower costs, drove net profit 8% higher to €2.77 billion during the January-March period, above a €2.36 billion average analyst consensus gathered by the bank. It said it now expected its 2025 net profit to surpass €9.3 billion, above last year's result net of tax credits, while it had previously said it would broadly match it. Orcel said in a statement that UniCredit was confident it could improve its profit and distribution guidance for 2025.
Business Recorder
12-05-2025
- Business
- Business Recorder
Italy's UniCredit raises profit outlook, says to be selective on deals
MILAN: Italy's second-biggest bank UniCredit strengthened its 2025 outlook on Monday after posting a surprise increase in first-quarter profit, and said it would pursue deals only if they further improved its 'unmatched standalone case'. CEO Andrea Orcel has placed UniCredit at the heart of the consolidation wave sweeping Italian finance, with a 14 billion euro ($16 billion) all-share offer for rival Banco BPM and a 6.7% stake in insurer Generali, which UniCredit has said is a financial investment, the same as its 28% stake in Commerzbank. However, the offer for BPM hangs in the balance after Italy's government imposed strict conditions to clear it, which UniCredit said could be harmful to the bank. UniCredit says it is complying with ECB order after Russian revenue rise Plans for a Commerzbank takeover face strong opposition from the new German government and the strategy over Generali remains unclear. UniCredit said fee and trading income, as well as lower costs, drove net profit 8% higher to 2.77 billion euros ($3.14 billion) during the January-March period, above a 2.36 billion euro average analyst consensus gathered by the bank. It said it now expected its 2025 net profit to surpass 9.3 billion euros, above last year's result net of tax credits, while it had previously said it would broadly match it. Orcel said in a statement that UniCredit was confident it could improve its profit and distribution guidance for 2025.
