Latest news with #AndreaOrcel
Reuters
3 days ago
- Business
- Reuters
Commerzbank official tells UniCredit CEO to sell and go home
FRANKFURT, July 4 (Reuters) - UniCredit's ( opens new tab recent push for a tie-up with Commerzbank ( opens new tab has prompted calls by a top official of the German bank for the Italian lender's CEO, Andrea Orcel, to abandon the pursuit. With UniCredit continuing to face fierce resistance in Germany, Orcel last month sent a flurry of letters to German Chancellor Friedrich Merz and others, urging them to come to the table to discuss a deal. But the latest offensive, which only became public this week, has come up against steadfast resistance from Sascha Uebel, deputy chair of Commerzbank's supervisory board, adding to previous opposition from the German government and the bank's board since UniCredit's initial approach last September. "His next step should be to sell his shares, take his profits and go home," Uebel told Reuters on Friday. UniCredit, which last year bought a large stake in the Commerzbank and began to press for a merger, declined to comment. In his letters, Orcel wrote that a tie-up would be beneficial "economically, socially and politically" and would create a new national banking champion for Germany. Orcel was also given short shrift by the Verdi labour union, which said its concerns had not been allayed, according to copies of their correspondence seen by Reuters. "We are continuing to campaign against a merger and are in favour of an independent Commerzbank," Verdi boss Frank Werneke wrote to Orcel in a response dated July 2.
Business Recorder
3 days ago
- Business
- Business Recorder
Commerzbank official tells UniCredit CEO to sell and go home
FRANKFURT: UniCredit's recent push for a tie-up with Commerzbank has prompted calls by a top official of the German bank for the Italian lender's CEO, Andrea Orcel, to abandon the pursuit. With UniCredit continuing to face fierce resistance in Germany, Orcel last month sent a flurry of letters to German Chancellor Friedrich Merz and others, urging them to come to the table to discuss a deal. But the latest offensive, which only became public this week, has come up against steadfast resistance from Sascha Uebel, deputy chair of Commerzbank's supervisory board, adding to previous opposition from the German government and the bank's board since UniCredit's initial approach last September. 'His next step should be to sell his shares, take his profits and go home,' Uebel told Reuters on Friday. UniCredit, which last year bought a large stake in the Commerzbank and began to press for a merger, declined to comment. In his letters, Orcel wrote that a tie-up would be beneficial 'economically, socially and politically' and would create a new national banking champion for Germany. Orcel was also given short shrift by the Verdi labour union, which said its concerns had not been allayed, according to copies of their correspondence seen by Reuters. 'We are continuing to campaign against a merger and are in favour of an independent Commerzbank,' Verdi boss Frank Werneke wrote to Orcel in a response dated July 2.
Mint
3 days ago
- Business
- Mint
Commerzbank Plans to Sell SRT Tied to €2 Billion of Loans
(Bloomberg) -- Commerzbank AG plans to sell a significant risk transfer tied to a portfolio of corporate loans, according to people familiar with the matter, as the German lender moves to free up capital to fend off a potential takeover bid from UniCredit SpA. Frankfurt-based Commerzbank aims to issue an SRT tied to €2 billion ($2.4 billion) of loans, according to the people, who asked not to be named. The size of the SRT would be around 6.9% of the reference portfolio or about €140 million, they added. A representative for Commerzbank declined to comment. While Commerzbank has used SRTs for years, such transactions are now part of a wider plan by Chief Executive Officer Bettina Orlopp to keep the lender independent. Moody's Ratings on Thursday raised Commerzbank's credit rating, citing strengthened capitalization and improved profitability. UniCredit, led by Chief Executive Officer Andrea Orcel, bought a stake in Commerzbank from Germany's government in September and subsequently increased its holding. Orcel has renewed his push for a deal that he says would create a European banking champion, sending a letter last month to top German officials including Chancellor Friedrich Merz. Orlopp is seeking to unlock more capital, partly by using more significant risk transfers. Commerzbank's corporate clients unit expects SRTs to help it cut €10 billion in so-called risk-weighted assets in the years through 2028, division head Michael Kotzbauer said in a presentation on Thursday. Global sales of SRTs are expected to grow 11% on average over the next two years, according to a recent Bloomberg Intelligence survey. Aareal Bank AG, Erste Group Bank AG, Standard Chartered Plc and ING Groep NV are currently discussing or finalizing such deals. More stories like this are available on
Reuters
4 days ago
- Business
- Reuters
UniCredit CEO presses case for Commerzbank merger in letter to Germany's Merz
FRANKFURT, July 2 (Reuters) - The CEO of UniCredit ( opens new tab renewed his push to merge the Italian bank with its German rival Commerzbank ( opens new tab, attempting to make his case in a letter to Germany's Chancellor Friedrich Merz. UniCredit last year acquired a large stake in the German lender and has been calling for a full takeover, despite resistance from Commerzbank management and the German government, which is another top shareholder. "As I have repeatedly said, I would like to sit around a table and discuss this matter face-to-face," UniCredit Chief Executive Officer Andrea Orcel wrote in the June 18 letter to Merz, according to a copy seen by Reuters. Sueddeutsche Zeitung first reported the existence and content of the letter, which was also sent to German Finance Minister Lars Klingbeil. Both Merz and Klingbeil have voiced opposition to any tie-up of the two European banks. "It would create a new national banking champion for Germany - an institution dedicated to supporting the revitalisation of the German economy that is at the heart of the new government's agenda," Orcel wrote, in reference to a possible merger. "While we firmly believe a merger would be the optimal eventual direction of travel, should this not be feasible, then there is still a need for us to sit together to find a mutually agreeable and positive solution that works for all parties," he wrote. The UniCredit CEO noted that German politicians would have the final say on the location of the headquarters of a combined bank. A merger would bring together Frankfurt-based Commerzbank and UniCredit's German unit, Munich-based HVB. "We fully recognise the sensitivities connected to this issue ... the eventual location of a combined entity headquarters would be at the discretion of the German government and respective mayors," he said. Orcel also said Commerzbank's branch network would be protected and that local decision-making would remain for things like loans. "The principle of local, market-centric decision-making is central to our culture and would continue to be guaranteed," Orcel wrote. UniCredit wasn't immediately available for comment. Commerzbank declined to comment. Germany's finance ministry confirmed receipt of the letter. Klingbeil wrote back to express his thanks and referred Orcel to Commerzbank's management, it said. In May, Commerzbank CEO Bettina Orlopp, who has been working on keeping the bank independent, said "we don't need constant interference from the outside".
Bloomberg
5 days ago
- Business
- Bloomberg
UniCredit Renews Commerzbank Merger Pitch as Germany Stands Firm
UniCredit CEO Andrea Orcel and German Finance Minister Lars Klingbeil exchanged letters over the future of Commerzbank AG, according to people familiar with the matter. Orcel renewed his push for a deal that he says would create a European banking champion, in a June 18 letter addressed to top German officials including Klingbeil and Chancellor Friedrich Merz. Klingbeil responded by urging Orcel to direct any proposals to Commerzbank's management and reiterated the government's support for the bank's independence, emphasizing it should not become the target of a hostile takeover, the people said.
