Commerzbank Declines UniCredit's Takeover Bid Citing Inadequate Premiums

Commerzbank has rejected a takeover bid from UniCredit, citing the offer as undervalued and risky, with substantial job cuts and business risks. The German bank's management recommends shareholders against the deal, setting the stage for further conflict at the upcoming shareholder meeting.

In a significant development, Commerzbank has formally declined an unsolicited takeover bid from Italy's UniCredit. The German bank considers the offer undervalued, estimating its worth at nearly 39 billion euros, a figure below its market valuation.

Commerzbank's supervisory and management boards advise shareholders to reject the offer, which they argue does not reflect the company's true value and poses considerable risks. Criticism of the proposal as vague and coercive highlights ongoing resistance from German executives, employees, and the government.

The stalemate is expected to intensify at Commerzbank's annual shareholder meeting, with concerns over potential job cuts and exposure to UniCredit's risks. UniCredit's CEO emphasizes European banking consolidation, while Commerzbank warns of significant business restructuring impacts.