Commerzbank Doesn’t See Basis For Deal With UniCredit Following Talks
‘An agreed solution is currently not evident,’ Commerzbank says
- Commerzbank rejected UniCredit’s takeover offer, stating interactions haven’t shown enough value upside potential.
- UniCredit, Commerzbank’s largest shareholder, launched a takeover offer last month to pressure management.
- Commerzbank reiterated its standalone strategy’s value potential and will upgrade financial targets in May.
Germany’s Commerzbank CBK 0.19%increase; green up pointing triangle said that its interactions with UniCredit UCG 0.35%increase; green up pointing triangle haven’t convinced it to do a deal as they haven’t shown enough value upside potential.
The Italian lender, which is Commerzbank’s largest shareholder, last month ratcheted up pressure by launching a takeover offer to force management to the negotiating table.
Commerzbank on Tuesday reiterated the value-creation potential of its business strategy as a standalone entity and said it would upgrade its financial targets when it publishes its first-quarter results in May.
The banks have met several times to discuss the basis and benefits of a tie-up. “An agreed solution is currently not evident,” Commerzbank said.
Most of the potential outlined by UniCredit isn’t based on a combination and can also be realized by Commerzbank independently, without execution risks linked to doing a deal, the German group added.
UniCredit wasn’t immediately available for comment.