Andrea Orcel stated that the goal is to initiate dialogue and reduce misunderstandings between the two banks.
Key Points: UniCredit made a €34.7 billion acquisition offer to Commerzbank in an attempt to break an 18-month deadlock between the two institutions.
UniCredit's Chief Executive Officer, Andrea Orcel, has indicated that the bank will adopt a more proactive stance towards Commerzbank going forward. He did not rule out the possibility of revising the terms of the acquisition offer should both parties reach an agreement on a shared plan.
Earlier this week, UniCredit formally submitted an acquisition proposal valuing Commerzbank at approximately €34.7 billion (equivalent to $400.5 billion). This move aims to resolve the stalemate that has persisted since 2024 when UniCredit became a shareholder in the German rival.
Commerzbank responded by stating that it had not engaged in discussions with UniCredit regarding this offer and reaffirmed its commitment to an independent growth strategy. The bank's CEO, Bettina Orlop, subsequently expressed surprise at the offer's "low price."
Speaking at a Morgan Stanley conference in London on Wednesday, Orcel explained that the primary objective of the offer is to break the 18-month deadlock that has troubled both banks. This would be achieved through communication with Commerzbank's management, employee representatives, the German government, shareholders, and clients.
"Our goal is to initiate a 12-week period of communication and dialogue, putting all cards on the table," Orcel said. "We aim to forge a common vision, a common strategy, and a common plan through these discussions, gaining support from all parties; at the very least, we hope to reduce misunderstandings and anxieties arising from mutual misreading. This is the way to achieve a win-win situation."
During European midday trading, Commerzbank's share price rose by 4.5%, while UniCredit's shares increased by 1.25%.
Orcel outlined three potential outcomes from this proposal:
The first scenario involves UniCredit maintaining its current stake in Commerzbank, which is just under 30%, or increasing its holding slightly without seeking a controlling interest. In this case, the only change would be that UniCredit would more actively share its perspectives on the German bank's future development.
The other two possibilities are considered less likely: UniCredit gaining a controlling stake in Commerzbank, or even reaching a point where a full merger becomes feasible.
Orcel mentioned that UniCredit is not currently considering increasing the premium offered in its bid. However, the proposal could be adjusted based on the progress and nature of the communication with Commerzbank.
Although the formal completion of any offer would not occur until next year, Orcel stated that UniCredit expects to know the outcome by June of this year.
Comments