Senior Visa official lauds progressive steps taken by the UAE
business4 days ago
Shares of Commerzbank and UniCredit fell on Monday after the German government said that it would retain its 12 per cent stake in the German bank for now in a move that will likely keep any merger with the Italian lender on hold.
Late on Friday, Germany’s Finance Agency said the state will not sell any more shares in Commerzbank for the time being and the bank’s strategy is “geared towards independence”, in the clearest sign that the government does not favour a takeover of the country’s second-biggest lender.
UniCredit’s swoop is the most ambitious attempt yet at a pan-European bank merger but it faced considerable political hurdles in Germany ahead of national elections.
Commerzbank shares were down 5 per cent in late morning trade in Frankfurt, while UniCredit stock was 1.6 per cent lower in Milan.
Commerzbank’s shares had gained around 24 per cent since Sept. 11, the day that UniCredit announced it had amassed a 9 per cent stake in the German bank and expressed an interest in a merger. UniCredit shares had gained 5 per cent.
The announcement by the finance agency, an arm of the German finance ministry, means that UniCredit was now unlikely to make a takeover offer soon, some analysts said.
UniCredit’s unexpected acquisition of Commerzbank shares took Berlin by surprise and triggered opposition from labour unions and prompted a defence strategy from Commerzbank over fears that a merger could lead to massive job losses and stifle lending to small and medium-sized businesses.
Commerzbank, with more than 25,000 business customers, almost a third of German foreign trade payments and more than 42,000 staff, is a linchpin of the German economy.
The German government, which still owns 12 per cent of Commerzbank after selling 4.5 per cent of its shares to UniCredit, would play a key role in whether any deal can take place.
Commerzbank this week will hold meetings between its management and supervisory boards. The lender was preparing to put the bank’s finance chief, Bettina Orlopp, in charge of any talks with UniCredit, Reuters has reported.
Senior Visa official lauds progressive steps taken by the UAE
business4 days ago
70 brokerage firms now authorised by DIFC, representing largest cluster in the UAE
business4 days ago
Fed cuts rates by half a percentage point, cites ‘greater confidence’ on inflation
business4 days ago
Fame king Sheeraz Hasan unveils Hollywood.ai and Bollywood.ai at Token2049 in Singapore
business4 days ago
Malaysia wants to leverage Dubai’s geographical advantage as a strategic springboard
business4 days ago
This new technology has been jointly developed by Microsoft, Invest in Sharjah and Sharjah Publishing City
business5 days ago
CFIUS extends timeline to review Nippon Steel's US Steel bid
business5 days ago
John has been influential in reinforcing Dubai’s status as a global trade hub
business5 days ago