Italy's UniCredit has put a possible bid for Commerzbank on ice as the Germ...
LONDON/MILAN - Italy’s UniCredit has put a possible bid for Commerzbank on ice as the German rival does not want to engage in negotiations so soon after the collapse of merger talks with Deutsche Bank, four sources said.
That raised the prospect of a deal that would allow Italy’s largest bank by assets to shift its focus away from its struggling domestic market, a key plank of Chief Executive Jean-Pierre Mustier’s strategy. “Commerzbank told UniCredit they need time to think about the best course of action,” said one of the sources, who has direct knowledge of the matter.
But the Italian bank, which has been concentrating on its own turnaround plan, had been awaiting the outcome of merger talks between Commerzbank and its larger Frankfurt neighbor, Deutsche Bank, which unraveled in April.UniCredit’s plans for a tie-up with Commerzbank were already at an advanced stage, the sources said.
The German combination would be listed in Frankfurt, while UniCredit would maintain its listing and headquarters in Milan. Two bankers close to the situation said UniCredit would need a capital increase of between 5-7 billion euros to finance the deal.
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