BERLIN (Reuters) – Commerzbank supervisory board head Jens Weidmann said there was little chance of a friendly merger with UniCredit after the Italian bank's surprise purchase of a large stake in the German lender, Handelsblatt newspaper reported.
“It's like any relationship: if the beginning doesn't work out, it will be difficult,” Weidmann told Handelsblatt newspaper in an interview published on Monday.
He also expressed doubt that a hostile takeover in the banking sector could create sustainable value.
“In mergers, it is important that management first talk to each other in a spirit of trust and develop a common understanding,” Weidmann said. “UniCredit Bank decided not to do that and surprised us by coming in. This is not a good approach.”
UniCredit now controls about 28% of Commerzbank's shares. The Italian lender holds about 9.5% directly, and UniCredit also gained access to a total of 18.5% through financial instruments.
According to Weidmann, it would be beneficial for German financial sovereignty to have two large, independent private banks, Deutsche Bank (ETR:) and Commerzbank.
A look at HypoVereinsbank and Bank Austria, which UniCredit acquired in 2005, shows how banks can evolve after losing their independence, he said.
“Commerzbank's footprint in Germany will likely be smaller and Frankfurt's attractiveness as a financial center will suffer,” Weidmann said, adding that many clients, especially from the SME sector, will have to reorient themselves in response to the crisis. Like this move.
