Euro News Source
No Result
View All Result
Saturday, June 25, 2022
  • Login
  • Home
  • Latest News
    • All Europe
    • United Kingdom
      • England
      • Ireland
      • Scotland
      • Wales
    • France
    • Germany
    • Italy
    • Spain
    • Austria
    • Belgium
    • Netherlands
    • Switzerland
  • Economics
  • Politics
  • Health
  • Sports
  • Videosnew
Subscribe
Euro News Source
  • Home
  • Latest News
    • All Europe
    • United Kingdom
      • England
      • Ireland
      • Scotland
      • Wales
    • France
    • Germany
    • Italy
    • Spain
    • Austria
    • Belgium
    • Netherlands
    • Switzerland
  • Economics
  • Politics
  • Health
  • Sports
  • Videosnew
No Result
View All Result
Euro News Source
No Result
View All Result
Home News Italy

Commerzbank, UniCredit rise even as reported M&A talks fizzle

by Francesco Mazzagatti
May 18, 2022
in Italy
A A
0
152
SHARES
1.9k
VIEWS
FacebookTwitterLinkedin
  • Commerzbank says strategy is to remain independent
  • UniCredit had looked at Commerz deal under Mustier
  • Meeting took place but did not touch on M&A – source

MILAN, May 18 (Reuters) – UniCredit and Commerzbank shares rose on Wednesday after a newspaper reported the Italian and German lenders had planned to meet to start merger talks before abandoning the idea because of the war in Ukraine.

The Financial Times reported UniCredit CEO Andrea Orcel had arranged to meet his Commerzbank counterpart Manfred Knof with a view to discussing a possible tie-up. read more

Russia’s invasion of Ukraine on Feb. 24, however, forced Orcel to instead focus on managing the Italian bank’s exposure to Russia, which UniCredit is trying to divest. UniCredit had no comment on the FT report. read more

Register now for FREE unlimited access to Reuters.com

A spokesperson for Germany’s No.2 lender said only the bank sought to create the conditions to remain independent.

The two CEOs met earlier this year as part of Orcel’s regular talks with peers at rival lenders, but given the Ukraine conflict, did not touch on mergers and acquisitions, a person briefed on the matter told Reuters on condition of anonymity.

By 1115 shares in Commerzbank rose 4% against a flat European banking stock index (.SX7P).

UniCredit (CRDI.MI) gained 2% after opening little changed with Milan-based traders saying the idea of a potential tie-up was gaining traction.

Analysts noted both UniCredit and Commerzbank trade with a discount of around 70% to their book value.

UniCredit, where German insurer Allianz (ALVG.DE) is a leading investor, had studied a Commerzbank acquisition under previous CEO Jean Pierre Mustier, but the deal encountered political resistance.

Commerzbank is 15.6% owned by the government, which bailed it out more than a decade ago and has undergone a long restructuring.

Milanese broker Equita SIM said the deal would carry high execution risks because it would need 1.5 billion euros ($1.58 billion) in cost cuts to boost earnings per share (EPS) given fragmentation and low profitability in the German banking market.

UniCredit last year failed to clinch a deal with Italy’s Treasury to buy state-owned rival Monte dei Paschi (BMPS.MI) because Rome deemed capital demands excessive after Orcel said he would only consider an acquisition that boosted EPS by 10%.

Commerzbank, whose market value is less than half that of UniCredit, has long been seen as a potential target for UniCredit, which is present in Germany through its HypoVereinsbank unit.

Orcel, the former head of investment banking at Swiss bank UBS (UBSG.S), has said UniCredit is constantly reviewing M&A opportunities and is open to deals that boost value for investors and strengthen its franchise in markets where it already operates.

The Ukraine crisis, however, forced UniCredit to set aside 1.2 billion euros against possible losses in the first quarter, limiting the bank’s excess capital and hitting its share price.

($1 = 0.9501 euros)

Register now for FREE unlimited access to Reuters.com

Reporting by Valentina Za in Milan and Tom Sims in Frankfurt; Additional reporting by Claudia Cristoferi;
Editing by Keith Weir and Barbara Lewis

Our Standards: The Thomson Reuters Trust Principles.

Source: Reuters

Tags: BACTBISVBISV08BNKSBNKS1BSVCCEEUCHCMPNYDEDEAL1EUROPEZCFINFINSFINS08HOTINVBISINVMINVM1INVS08ITMRGMTPIXPUBLSTXTOPCMBTOPNWSWEU

Related Posts

Italy

Five countries seek to delay EU fossil fuel car phase-out

June 24, 2022
Italy

Eni postpones IPO of energy transition unit due to market conditions

June 23, 2022
Italy

Apple and Android phones hacked by Italian spyware, Google says

June 23, 2022
Italy

Dire Italian drought worsening, breaking records – water authority

June 23, 2022
Italy

Italy’s Monte dei Paschi seeks 2.5 billion euros for latest relaunch plan

June 23, 2022
Italy

Italy’s De Nora family to hold controlling stake in group after IPO

June 23, 2022
  • Trending
  • Comments
  • Latest

Woman livestreams fatal stabbing of half-sister

October 25, 2021

Prison sentences for protestors who pray outside abortion clinics in Spain

February 4, 2022

Investigation opened into porn video recorded on altar of Flemish church

November 3, 2021

Irish couple, 23 and 26, ‘carry out vicious knife attack in Sydney’

October 14, 2021
Freedom Day

Freedom Day

0
Fire Accident

Fire Accident In Iraq

0
Scotland

Advice from the Scotland Prime Minister

0
Brexiteers

Brexiteers Should Thank The EU

0

‘I maybe really do not feel it, but…’ – Bradley Wiggins on Chris Froome’s pursuit of fifth Tour de France title

June 25, 2022

Meet Ryan Peniston: Essex boy, cancer survivor, and now Wimbledon wildcard at 26

June 25, 2022

‘I do not do it for the wins’ – Annemiek Van Vleuten on her lifelong journey to the Tour de France Femmes

June 25, 2022

Rail strikes: Third working day of industrial action established to lead to weekend chaos – with no trains operating in some well-liked seaside towns

June 25, 2022

Recent Posts

‘I maybe really do not feel it, but…’ – Bradley Wiggins on Chris Froome’s pursuit of fifth Tour de France title

June 25, 2022

Meet Ryan Peniston: Essex boy, cancer survivor, and now Wimbledon wildcard at 26

June 25, 2022

‘I do not do it for the wins’ – Annemiek Van Vleuten on her lifelong journey to the Tour de France Femmes

June 25, 2022

Rail strikes: Third working day of industrial action established to lead to weekend chaos – with no trains operating in some well-liked seaside towns

June 25, 2022

‘He understands what’s best’ – Ajax supervisor assured Jurrien Timber won’t be part of Manchester United

June 25, 2022

Glastonbury lovers and organizations which rely on festivals are viewing the effects of the value of living crisis

June 25, 2022

Recent Posts

  • ‘I maybe really do not feel it, but…’ – Bradley Wiggins on Chris Froome’s pursuit of fifth Tour de France title
  • Meet Ryan Peniston: Essex boy, cancer survivor, and now Wimbledon wildcard at 26
  • ‘I do not do it for the wins’ – Annemiek Van Vleuten on her lifelong journey to the Tour de France Femmes
  • Rail strikes: Third working day of industrial action established to lead to weekend chaos – with no trains operating in some well-liked seaside towns
  • ‘He understands what’s best’ – Ajax supervisor assured Jurrien Timber won’t be part of Manchester United

Categories

  • Austria
  • Bahamas
  • Belarus
  • Belgium
  • Breaking News
  • Brexiteers
  • Business
  • China
  • COVID Cases
  • Covid-19
  • Cyber security
  • Debt
  • Economics
  • Energy
  • England
  • Fashion
  • Fire Accident
  • France
  • Freedom Day
  • Germany
  • Health
  • Human Launch
  • Humanitarian
  • Ireland
  • Italy
  • Netherlands
  • News
  • Norway
  • Opinion
  • Politics
  • Refugees
  • Russia
  • Russia
  • Rwanda
  • Saudi Arabia
  • Science
  • Scotland
  • Scotland
  • Spain
  • Spanish-Flu
  • Sports
  • Switzerland
  • Travel
  • Ukraine
  • United Kingdom
  • Videos
  • Wales
  • Zambia

Site Navigation

  • About
  • Advertise
  • Guest Post
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
Euro News Source

Euro News Source is one of the best sources of European News. We provide the latest news from the European Union and its member states, local and international political, economic and sports news. Follow us to receive all news from around the European Union.

© 2021 Euro News Source.

No Result
View All Result
  • Home
  • Latest News
    • All Europe
    • United Kingdom
      • England
      • Ireland
      • Scotland
      • Wales
    • France
    • Germany
    • Italy
    • Spain
    • Austria
    • Belgium
    • Netherlands
    • Switzerland
  • Economics
  • Politics
  • Health
  • Sports
  • Videos

© 2021 Euro News Source.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?