Milan., The head of the Italian bank UniCredit, Andrea Orcel, participated on Friday in a virtual meeting with representatives of the German Commerzbank, after becoming the largest private investor in the German lender, a source familiar with the matter told Reuters.
UniCredit revealed earlier this month that it bought a 9 percent stake in Commerzbank, plans to buy more shares and has pressed talks to explore a tie-up.
UniCredit’s investment has sparked tensions in Germany, where Commerzbank management, employees and the country’s chancellor, Olaf Scholz, have expressed opposition.
The Italian government has so far taken a more cautious stance, but Deputy Prime Minister Matteo Salvini said this week he would not want Unicredit to move its headquarters to Germany as part of the deal.
The UniCredit deal is the most ambitious attempt to date at a banking merger in Europe, but it faces considerable political hurdles in Germany ahead of national elections.
Commerzbank CEO-designate Bettina Orlopp was also present at Friday’s conference call, which a UniCredit source previously described as the type of meeting companies hold with their investors. UniCredit declined to comment.
Orlopp, who was named chief executive of Commerzbank earlier this week, said at a conference in London on Thursday that the two banks would meet to “exchange views” now that UniCredit is a shareholder.
Italian newspapers first reported Orcel’s attendance on Saturday. Il Sole 24 Ore newspaper also said Commerzbank’s financial goals were discussed on the call, although no possible combination was mentioned.
Orcel has said publicly that a merger would be the best outcome after Italy’s second-largest bank this month built a potential 21 percent stake in the German rival, subject to clearance from the European supervisor.
A merger, however, would require broad support from all interested parties, according to Orcel, who does not rule out selling UniCredit’s stake, a move that would likely eliminate the 30 percent takeover premium built up in Commerzbank shares since that UniCredit bought the stake.
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– 2024-10-01 09:24:28
