By John O’Donnell and Valentina Za
BERLIN, July 24 (Reuters) – Commerzbank Chairman Jens Weidmann on Friday invited UniCredit to open talks on the terms of a merger, as the German lender abandoned its remaining resistance to the unwanted Italian takeover and focused on securing concessions.
Commerzbank’s campaign against a UniCredit takeover has faded in recent weeks as the Italian lender gradually accumulated a stake of 48%, which is sufficient to determine shareholder resolutions.
“Even though we would have preferred things to be different, the balance of power at the next Annual General Meeting is clear,” said Weidmann, a former Bundesbank chief and a highly respected figure in Germany.
His remarks step up Commerzbank’s push for direct engagement with UniCredit, after months of recriminations in which each side blamed the other for the lack of talks.
UniCredit CEO Andrea Orcel on Thursday asked to engage with the German government and workers’ representatives – who occupy half of the seats on Commerzbank’s supervisory board.
Weidmann urged Orcel not to ignore Commerzbank’s management.
“We have to have constructive talks to establish the key parameters for staff, shareholders and the customers of the bank,” he said in a statement on Friday.
“Everyone needs to act like adults now, because one thing is certain: These discussions are in UniCredit’s interest as well, and there will be no shortcut via Berlin,” he added.
Commerzbank’s deputy chairman and head of the works council also said on Wednesday that it was time to act as adults and refer negotiations to the bank’s management.
NEGOTIATING WINDOW
Orcel, however, on Thursday referred only to the requests he expected from the German government and Commerzbank workers when he said it should be possible to reach a satisfactory deal.
On Friday, Boris Rhein, the premier of Commerzbank’s home state of Hesse, said Orcel was aware he wanted Commerzbank’s head offices to remain in Frankfurt along with safeguards for key jobs and long-term financing for small firms.
Rhein urged the two banks to hold “direct” talks.
Orcel said he had “taken full note” of Rhein’s remarks and respected his expectations, but he ignored Rhein’s call for direct talks with Commerzbank, saying he stood ready to engage directly with the German federal government.
Orcel has pointed to a window for negotiations ahead of regulatory approvals, expected by the end of the year, which will hand UniCredit full control of its stake.
UniCredit expects Commerzbank to start adopting from January the strategy the Italian rival has mapped out for its German peer.
Orcel said UniCredit could call an extraordinary shareholder meeting to unseat Commerzbank’s board before the AGM.
A spokesperson for UniCredit said the bank’s stance had been made clear by the CEO on Thursday.
The tussle between Commerzbank and UniCredit began in September 2024 when the Italian bank bought a stake, sparking opposition from Berlin and setting off one of the most contentious European banking battles for decades.
(Reporting by John O’Donnell; Additional reporting by Valentina Za; Editing by Miranda Murray, Kirsten Donovan)
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