Commerzbank (CBKG.DE) will hold a first round of talks with UniCredit (CRDI.MI) on Friday as the Italian lender presses for a possible tie-up, the German bank's designated CEO, Bettina Orlopp said on Thursday.
UniCredit earlier this month revealed it had bought a 9% stake in Commerzbank, plans to buy more shares and has pressed for discussions to explore a tie-up.
Orlopp's first comments on the potential tie-up since she was named this week the German bank's next chief executive officer at a critical juncture in its 154-year history, came minutes after the bank said its supervisory and management boards unanimously agreed to support the bank's current strategy of independence.
Orlopp, speaking at a financial conference in London, said the bank was open minded but that the speed of synergies and risks to executing any deal needed evaluation.
"Sometimes it makes sense, sometimes it doesn't make sense, and that is something we need to find out jointly," she said.
But the bank also wasn't going to engage in any "crazy" sell-downs, acquisitions or "stupid things", she warned.
Her comments effectively serve as a response to UniCredit's chief Andrea Orcel, who said on Wednesday at the same conference that a tie-up would be the best outcome.
Commerzbank shares extended their gains on news of the talks, and were last up 5.1%. UniCredit shares also rallied 3.6%.
Commerzbank's management, employees and the nation's chancellor, Olaf Scholz, have all voiced opposition to a potential takeover, but at least one big investor and some business leaders favour talks.
The bank's support for the current strategy was "unanimously confirmed," the bank said in an earlier statement on Thursday.
That agreement came after the supervisory board, which includes a number of members vehemently against a tie-up, met with management on Wednesday at an annual retreat in the woody hills outside Frankfurt.
The bank, seeking to garner support among investors with its current strategy, also in its earlier statement increased a key profitability metric and promised to pay shareholders more in dividends and buybacks.
The bank said it was now expecting the key metric, its return on tangible equity, to be 12.3% in 2027, more than the 11.5% previously flagged and better than analyst estimates of around 10%.
The bank also set a profit forecast for 2027 of more than 3 billion euros, which is roughly in line with analyst expectations.
