Commerzbank Will protect the interests of its shareholders amid the ongoing takeover dispute with Italy unicreditBettina Orlop, CEO of the German lender, said on Friday.
Speaking with CNBC’s “Squawk Box Europe,” Orlop said Commerzbank is open to discussions with UniCredit — but stressed that the Milan-headquartered bank must recognize the strength of its “credible, ambitious” standalone strategy in any new talks.
Commerzbank reported an operating profit of 1.36 billion euros ($1.6 billion) in its first-quarter results, and now targets a net return on real equity of 21% by 2030. The German lender expects net interest income to reach around €8.6 billion by 2026.
It also plans to cut about 3,000 jobs to help it reach its goal.
Commerzbank shares were 2.6% lower in early trading. UniCredit was trading 1.9% lower.
Orlop said UniCredit’s proposal “does not reflect the strength” of the German bank’s business model should Commerzbank gain control. He also criticized the lack of details about how Commerzbank would be integrated with UniCredit’s Munich-based subsidiary, Hypoverinsbank.
“Given our standalone strategy and the upside potential we’re offering today, we expect a premium — and our shareholders should expect a premium,” Orlop told CNBC’s Annette Weisbach in an interview.
Orlop said, “There are very few details on integration with the HVB… There are no details when it comes to pan-European harmonisation.” He said that without a formal European banking union, pan-European synergy is “hard to realize”.
Commerzbank.
Commerzbank is “absolutely open” to further talks with UniCredit, Orlop said.
“But we expect there is a willingness to acknowledge the strength and cornerstones of our business model, and most importantly, the premium for our shareholders,” he said. “We are here to protect the interests of our shareholders.”
UniCredit already holds a 28% stake in Commerzbank and wants to increase its position to more than 30%, a key regulatory limit in any takeover bid.
Orlop declined to comment on rumors that the German government, which holds a 12% stake in Commerzbank, might increase its stake as part of an alternative offer.
But he said Berlin’s interest reflected the view that UniCredit’s takeover proposal would “certainly harm” Germany’s diverse small and medium-sized companies, known as . mittelstandWhat he called “the backbone of our economy.”
On Monday, UniCredit shareholders voted to approve the issuance of 470 million new shares, which can be exchanged for Commerzbank shares in a tender offer for the German lender.
UniCredit CEO Andrea Orcel told CNBC that while he does not expect the Italian lender to acquire overall control of Commerzbank, its growing influence has already prompted the German bank’s management to “review everything and try to extract more value, be more ambitious (and) change things for the better.”
— CNBC’s Domi Suskova contributed to this story.
