By Tom Sims
FRANKFURT (Reuters) – Commerzbank’s designated CEO Bettina Orlopp met virtually with UniCredit bankers on Friday morning, two people with knowledge of the matter told Reuters, as the German bank began talks with its Italian suitor.
Italy’s No. 2 bank is pushing for a takeover after acquiring a stake earlier this month, while Germany’s No. 2 bank is tightening its defenses as it pursues a strategy of independence.
It was not immediately clear which UniCredit executives were present.
Orlopp, who was appointed the bank’s new CEO earlier this week, told a financial conference in London on Thursday that the two banks would meet to “exchange views” now that UniCredit is a shareholder.
UniCredit surprised Commerzbank (ETR:) when it acquired a 9% stake and said it planned to buy more shares if it received regulatory approval, while pushing for discussions to explore a partnership.
Commerzbank shares traded 0.5% higher in Frankfurt after gaining almost 7% on Thursday, while UniCredit was 0.8% lower after gaining almost 5% on Thursday.
Commerzbank shares have risen about 30% since UniCredit made its stake public.
UniCredit’s move is the most ambitious attempt yet at a pan-European banking merger, but it faces significant political hurdles in Germany ahead of national elections.
Commerzbank management, employees and Chancellor Olaf Scholz have all opposed a possible takeover, but at least one major investor and some company executives are in favor of talks.
Orcel, which has long had an interest in a partnership with Commerzbank, said this week that this would be the best outcome.
Orlopp said on Thursday the bank was open-minded but that the speed of synergies and risks in executing a deal needed to be evaluated.
“Sometimes it makes sense, sometimes it doesn’t make sense, and that’s something we have to discover together,” Orlopp said.
Bloomberg first reported Orlopp’s participation in the meeting.
