Commerzbank rejects UniCredit’s €39bn takeover offer, citing undervaluation and execution risks in the proposed deal.
Commerzbank’s supervisory and management boards formally advised shareholders to reject UniCredit’s €39bn ($45.37bn) takeover bid, calling the offer a discount to the bank’s long-term value. The boards stated the proposal fails to reflect Commerzbank’s fundamentals and carries significant risks, including job cuts and restructuring challenges.
UniCredit, now Commerzbank’s largest shareholder, submitted the offer earlier this month, valuing the German lender below its market price. Commerzbank noted its shares have traded above the implied offer value since the bid was announced, reinforcing its opposition to the deal.
The boards criticized UniCredit’s assessment of revenue declines, cost savings, and restructuring timelines, particularly regarding planned workforce reductions. Commerzbank has consistently opposed a merger, labeling UniCredit’s approach as vague and lacking an adequate premium.