Bettina Orlopp, CEO of Commerzbank, expressed concerns over a potential takeover by Unicredit, citing integration challenges and risks to German SMEs due to overlapping corporate customer bases. She noted that such a merger could lead to a downgrade in Commerzbank's credit rating and increased refinancing costs. Despite these risks, the bank's shares remain a strong buy, with a target price above €20.
Bettina Orlopp, CEO of Commerzbank, expressed concerns over a potential takeover by Unicredit, citing integration challenges and risks to German SMEs due to overlapping corporate clients. She noted that such a merger could lead to a downgrade in Commerzbank's rating and increased refinancing costs. Despite these risks, the bank's shares remain a strong buy, with a target price above €20.
Support for UniCredit's potential takeover of Commerzbank is growing, even in Germany, despite government resistance due to political concerns and upcoming elections. The deal, seen as a national consolidation rather than a cross-border merger, has backing from influential figures like Allianz and Jens Weidmann, indicating a shift in perception.
Unicredit's investment in Commerzbank sparked significant political reactions in Germany, with the government expressing surprise over the move. A letter from the Federal Ministry of Finance revealed numerous contacts between government officials and Unicredit representatives prior to the stake purchase, including discussions about the bank's existing shares. Despite the lively exchanges, Chancellor Olaf Scholz and Finance Minister Christian Lindner were not involved in these communications, raising questions about the government's decision to sell the entire stake to Unicredit rather than multiple investors.
The DAX index reached a new all-time high of 19,518, closing at 19,508, continuing its upward trend. With no significant technical resistance ahead, potential gains towards 19,600 or even 20,000 are possible. However, a drop below the September high of 19,492 could signal a retreat towards lower support levels.
UniCredit's CEO Andrea Orcel is pursuing a cross-border merger with Commerzbank, aiming to create a major European banking entity. Despite securing a 21% stake, he faces significant political resistance from German leaders and employees, which could hinder the merger's progress. If successful, this move could reshape the European banking landscape and inspire further consolidation efforts.
Commerzbank is seeking additional advice to counter a takeover attempt by Unicredit, with UBS and Goldman Sachs stepping in to provide support. Proposals on defensive strategies are expected to be ready by October, as reported by "Börsen-Zeitung" in Frankfurt.
Digital asset bank Sygnum has secured regulatory approval to operate in Liechtenstein, positioning itself for expansion into the EU as the Markets in Crypto-Assets Regulation (MiCA) takes effect. Originally established in Switzerland in 2019, Sygnum is now licensed as a crypto asset service provider, offering brokerage, custody, and B2B banking services. With a network of over 20 partner banks and recent funding of $40 million, Sygnum aims to leverage its experience in the competitive European market.
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