Commerzbank and UniCredit engaged in talks on Friday amid the Italian banking giant’s apparent attempt to take over Germany’s second-largest bank.
Commerzbank’s incoming CEO, Bettina Orlopp, who is set to become the bank’s chief executive next month, has reportedly held a virtual meeting with UniCredit executives, with details currently under wraps. Orlopp revealed her intention to talk with UniCredit the day before, saying the two sides intend to “exchange views.”
UniCredit acquired a 9% stake in Commerzbank earlier this month, which was considered an unexpected move. It then upped its holdings to 21% earlier this week before submitting a request to acquire another 8.9% and increase the stake to 29.9%.
UniCredit’s move has met with criticism from the German government, which owns a 12% stake in Commerzbank, while the majority of Commerzbank’s leadership is opposed to the takeover and would prefer to remain independent.
“Commerzbank is continuously expanding its independent position as a strong pillar in the German banking market and a reliable partner to the domestic economy,” Jens Weidmann, chairman of Commerzbank’s supervisory board, said in a statement earlier this week.
Economists now predict a lengthy process in which UniCredit will continue to push for a merger while Commerzbank remains on defense. The predictions are that it might take months or even more than a year before the saga concludes.