UniCredit eyeing control of Commerzbank?

FRANKFURT: UniCredit SpA is preparing a rival multi-billion-euro bid to take control of Commerzbank AG, as Deutsche Bank AG is facing troubles with its move to buy its rival German lender, the Financial Times (FT) reported yesterday.

The Italian lender planned to buy a sizeable stake in Commerzbank and merge it with HypoVereinsbank, the German lender it already owned, said the paper, citing people familiar with the matter.

Shares in Commerzbank were up 3.6 per cent in pre-market trade by 0559GMT while Deutsche Bank stock was seen opening 0.4 per cent higher.

UniCredit, Commerzbank and Deutsche Bank declined to comment on the report.

The combined entity would be based in Germany while UniCredit would maintain its headquarters and listing in Milan, said the report.

Reuters reported in 2017 that UniCredit had told Berlin it was interested in eventually merging with Commerzbank, with the bank later denying having an interest in the German lender.

Germany’s two top banks, Deutsche Bank and Commerzbank, said on March 17 they were in talks to merge.

The report on UniCredit’s interest in Commerzbank came a day after it was reported that the two German lenders were divided over the pace of their merger talks.

Commerzbank would like to see a speedy decision on whether to deepen the discussions while Deutsche Bank needs more time.

The FT reported that one of the parties might decide to walk away from the talks, adding that an announcement could be made as early as this weekend, citing people briefed on the discussions.

The Commerzbank board was due to decide next Tuesday on whether to intensify merger talks with Deutsche Bank or back away from a deal, said German business weekly WirtschaftsWoche on Wednesday.