A Battle Over Commerzbank's Future: Employees Stand Up Against Unicredit's Takeover
Bank workers at Commerzbank stage a demonstration in opposition to the potential acquisition by UniCredit - Bank employees stage demonstrations against potential acquisition by UniCredit
Commerzbank's annual gathering saw a heated debate about the bank's potential takeover by Unicredit. Despite the Italian megabank's hefty investments - up to 28 percent - the Federal Cartel Office's approval being granted in April, a public offer would only be mandatory if Unicredit surpassed the 30 percent mark.
Orlopp, Commerzbank's CEO, highlighted the bank's remarkable progress, reaching a record high of 2.7 billion euros in profits last year, with the stock price soaring from less than six euros in 2020 to around 26 euros today. The bank's best years are still to come, Orlopp stated optimistically at the gathering in Wiesbaden, met with frequent approvals from the 600 shareholders in attendance.
As planned, Commerzbank will return 1.73 billion euros to shareholders for the business year, 100 million euros more than initially predicted. The funds will be allocated to a stock buyback program of one billion euros and a higher dividend, which will increase from 35 cents to 65 cents per share. Orlopp emphasized the bank's commitment to maintaining attractive and reliable dividends in the years to come.
The shareholder representative, Klaus Nieding, who is also the Vice-president of the German Shareholder Protection Association, urged shareholders to resist Unicredit's takeover, as the Italian bank was absent from the gathering.
The prospects of Unicredit's takeover have sparked strong resistance, especially from the Commerzbank employees that protested outside the Rheinmain Congress Center in Wiesbaden. Kevin Voss of the Verdi trade union confirmed that the protesters favored Commerzbank's independence.
Protester Denis Krutikov, a 50-year-old Commerzbank employee, expressed their intentions to send a clear message to the shareholders, questioning whether a takeover would be beneficial when the employees are against it.
Unicredit's CEO, Andrea Orcel, hinted at a decision delay until 2026 or 2027, pending constructive dialogues with stakeholders. The German government, which still owns 12 percent of the shares due to the bank's state rescue in 2008, also opposes the takeover, labeling it as an "unfriendly approach" that threatens Commerzbank's systemic importance within Germany's financial landscape.
- Commerzbank
- Unicredit
- Bettina Orlopp
- Takeover
- Wiesbaden
- CEO
- Annual General Meeting
- The employees of Commerzbank, at the Annual General Meeting in Wiesbaden, voiced their opposition to the potential takeover by Unicredit, raising concerns within the industry, finance, and business sectors.
- As the German government, with its 12 percent stake, and the Commerzbank employees express disapproval, the plan for Unicredit to acquire Commerzbank must be carefully considered by banking-and-insurance professionals, given its potential impact on the ECSC of both banks.
