Commerzbank's CEO, Bettina Orlopp, has stated the German bank will actively defend its shareholder interests amid ongoing takeover discussions with Italy's UniCredit. She indicated a willingness to talk but stressed that UniCredit must acknowledge the strength of Commerzbank's independent strategy.
Stance on UniCredit Takeover Bid
During an interview with CNBC's "Squawk Box Europe," Orlopp addressed the potential acquisition by UniCredit. Key points from her statement include:
- Openness to Discussion: Commerzbank remains "absolutely open" to further talks with UniCredit.
- Condition for Talks: Discussions must recognize the strength of Commerzbank's "reliable, aspirational" standalone strategy.
- Shareholder Premium: Orlopp explicitly stated that shareholders deserve a premium, arguing that UniCredit's proposal lacks necessary detail.
Criticisms of UniCredit's Proposal
Orlopp criticized the proposed overhaul by UniCredit, specifically pointing out deficiencies in the integration plans:
- She questioned the lack of detail regarding the integration of Commerzbank with UniCredit's Munich-based subsidiary, HypoVereinsbank (HVB).
- She noted that realizing pan-European synergies remains difficult without a formal European banking union.
Commerzbank's Financial Outlook and Strategy
Commerzbank provided updates on its financial performance and future goals, alongside its defensive stance:
- Q1 Profit: The bank reported an operating profit of €1.36 billion in its first-quarter results.
- Long-Term Targets: Commerzbank is targeting a net return on tangible equity of 21% by 2030.
- Future Projections: The German lender anticipates net interest income reaching approximately €8.6 billion by 2026.
- Restructuring: To meet these goals, the bank is planning approximately 3,000 job cuts.
Market Context and Stake Holdings
The article provided context regarding the current ownership stakes and market reactions:
- UniCredit Stake: UniCredit currently holds a 28% stake in Commerzbank and is reportedly aiming to increase this to over 30%, a significant regulatory threshold.
- Government Stake: Orlopp declined to comment on rumors that the German government, which holds a 12% stake, might increase its holding.
- Economic Concern: She stated that the German government's interest reflects concerns that UniCredit's takeover offer would negatively impact Germany's small and medium-sized enterprises (Mittelstand), which she termed the "backbone of our economy."
