Commerzbank Board Hires UBS for Potential UniCredit Deal Advice

(Bloomberg) — Commerzbank AG’s supervisory board has mandated UBS Group AG to help it navigate a potential takeover bid from UniCredit SpA, according to a person familiar with the matter, who asked not to be named discussing private information. 

UniCredit earlier this month disclosed a 21% stake in Commerzbank. The Italian lender’s chief executive officer, Andrea Orcel, has said he’s considering a takeover. He also said he’s going to present proposals how to improve Commerzbank’s performance even if the acquisition doesn’t happen.

Commerzbank Chief Executive Officer-designate Bettina Orlopp said at a conference on Thursday that there will be a first meeting with UniCredit the following day to discuss the way forward.

Commerzbank’s management board continues to retain Goldman Sachs Group Inc. in an advisory capacity, the person familiar with the matter said. 

Officials for UBS and Commerzbank declined to comment on any mandates. The UBS mandate was first reported by Boersen-Zeitung.

While such roles are typically referred to as defense mandates, Orlopp said at the event on Thursday that the work involves more.

The term just means that Commerzbank has assembled a team that’s “defending the interests of our three stakeholder groups — investors, clients, staff — and nothing else,” she said. 

“We will not do any stupid things,” Orlopp also said when asked if the bank is considering any corporate actions that would make it less attractive for UniCredit to take it over, also known as ‘poison pills.’

“Any idea of now doing some crazy acquisitions or fast sell-downs et cetera, not with us, we won’t do that,” she said.

The supervisory boards of German companies oversee the strategy of executives and appoint top leadership. Such boards are generally made up of representatives for its shareholders and for its employees.

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