Overview
- Commerzbank’s management and supervisory boards, in a statement Monday, told investors not to accept UniCredit’s exchange offer.
- UniCredit, now the largest shareholder, valued Commerzbank at nearly €39 billion, which the bank says is below recent trading levels with shares closing above the implied price each day since the offer was announced.
- The boards said UniCredit’s plan is vague and risky, pointing to shaky claims about cost and revenue gains, underestimated restructuring bills, hard IT integration, and likely revenue loss where the two banks overlap.
- To bolster its stand-alone plan, Commerzbank has outlined about 3,000 job cuts and stricter profit targets.
- Attention now turns to this week’s annual meeting, as UniCredit nears Germany’s 30% threshold that would force a mandatory offer if crossed.