Commerzbank CEO Surprised by ‘Low Price’ of UniCredit Offer
The Commerzbank Chief said it was also a change of narrative compared with the messaging in February
- UniCredit, Commerzbank’s largest shareholder, offered to buy remaining shares, valuing the German bank at 30.8 euros a share.
- Commerzbank Chief Executive Bettina Orlopp expressed surprise at UniCredit’s bid, citing its “low price” and a “change of narrative.”
- Orlopp said Commerzbank would discuss a proposal if it made sense, while UniCredit aims to increase its holding above 30%.
Commerzbank CBK 2.15%increase; green up pointing triangle Chief Executive Bettina Orlopp said she was surprised by UniCredit’s UCG 1.94%increase; green up pointing triangle decision to launch a bid for the German bank, partly because of what she called the low price of the offer.
Orlopp’s comments came a day after UniCredit—Commerzbank’s largest shareholder with a roughly 30% stake—said it would offer to buy all the shares in the German bank it doesn’t already own, but that its move aimed to increase its holding above 30% with no expectation to result in majority control. UniCredit said it expected the exchange ratio of its offer to value Commerzbank at 30.8 euros a share, or 34.7 billion euros ($39.93 billion).
“It was a surprise because it was, again, a change of narrative when you compare it to the February messaging,” Orlopp said Tuesday at a Morgan Stanley conference in London. “The other surprising thing in relation to it is the offer itself, because it is at a very low price if you compare it to our target prices.”
Commerzbank shares were up 1.4% at 32.60 euros in European afternoon trading Tuesday, having closed 8.6% higher on Monday.
Orlopp said Commerzbank would discuss a proposal with UniCredit if it got one and would recommend it if the proposal made sense, but that the bank was focused on its standalone strategy in absence of that proposal.
“We need something in our hands. One would expect that someone who has moved now so far has something in the drawer which they can share with us,” she said. “That is the ask which we have.”
UniCredit didn’t immediately respond to a request for comment.