Commerzbank Speeds Up Planning Amid Potential UniCredit Bid.

UNICREDIT SpA; INVESTORS; CREDIT ratings; COMMERZBANK AG; STOCK prices; CONSUMERS; CHIEF executive officers; STUDENT loans

Commerzbank AG is accelerating its strategic planning in anticipation of a potential takeover bid from UniCredit SpA. The CEO of Commerzbank, Bettina Orlopp, stated that they are bringing forward internal discussions about the bank's strategy beyond 2027 in order to have a basis for comparison if UniCredit offers a merger. While a merger would take years to implement, Commerzbank wants to be able to compare the scenario with a medium to long-term perspective as an independent institution. Commerzbank's shares rose on the news, and the bank is working to secure investor support after UniCredit revealed a large stake and expressed interest in a takeover. UniCredit's CEO, Andrea Orcel, has indicated that he will seek to influence Commerzbank's strategy regardless of whether a takeover occurs. Orlopp pushed back against this, stating that differences in profitability between the two banks are due to market factors, and a merger would not advance European integration. Analysts at Citigroup Inc. estimate that Commerzbank's shares could be valued at €16 on a standalone basis and €19.50 in a bid. However, Orlopp believes that Commerzbank can reach a share price of at least €25 on its own. A potential takeover would come with risks such as client attrition and a potential downgrade in Commerzbank's credit rating. S&P Global Ratings has stated that Commerzbank's creditworthiness could be under [Extracted from the article]

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