Commerzbank to begin talks with UniCredit but digs in on independence

By Tom Sims

FRANKFURT (Reuters) -Commerzbank’s designated CEO, Bettina Orlopp, said on Thursday that the bank will hold a first round of talks with UniCredit on Friday as the Italian lender presses for a possible tie-up.

UniCredit earlier this month revealed it had bought a 9% stake in the German bank, plans to buy more shares and has pressed for discussions to explore a tie-up.

The comments, Orlopp’s first since she was named earlier this week the German bank’s next chief executive officer at a critical juncture in its 154-year history, came minutes after the bank said its supervisory and management boards unanimously agreed to support the bank’s current strategy of independence.

She said the bank was open minded, needed to “jointly” analyse any synergies that sometimes make sense and sometimes don’t. She said the bank wasn’t going to engage in any “crazy” sell-downs or acquisitions.

Commerzbank (ETR:) shares extended their gains as the CEO spoke, and were last up 4.2%. UniCredit shares also rallied 3.4%.

Commerzbank’s management, employees and the nation’s chancellor, Olaf Scholz, have all voiced opposition to a potential takeover, but at least one big investor and some business leaders favour talks.

The bank’s support for the current strategy was “unanimously confirmed,” after the supervisory board, which includes a number of members vehemently against a tie-up, met with management on Wednesday at an annual retreat in the woody hills outside Frankfurt, the bank said in its earlier statement.