UniCredit’s Orcel Rules Out Commerzbank Bid at Current Price | Company Business News

(Bloomberg) — UniCredit SpA Chief Executive Officer Andrea Orcel effectively ruled out making an offer for Commerzbank AG at the current price, saying such a move wouldn’t add value after a rally in the stock.

“We are far away” from a takeover offer, Orcel said in an interview with CNBC on Wednesday. “Secondly, in our opinion, the share price has gone well beyond the fundamentals.”

Orcel said previously that he may wait until 2027 before deciding on an all-out takeover offer, after a rally in the stock made a potential deal more expensive and the German government expressed opposition. Shares of Commerzbank have more than doubled in value since UniCredit first unveiled that it had built a major stake, as the smaller rival boosted payouts to investors in an effort to defend itself.

While the higher Commerzbank share price translate into a financial gain for UniCredit, Orcel has said he needs to be convinced that the rally is justified before deciding on a strategic transaction.

“There is a lot of activity which is directed at keeping the share price” high, the CEO said in the interview. “But we are patient, because that activity eventually will run into losses.”

Orcel Delays Commerzbank Decision Further as Obstacles Mount

Orcel separately told at a Goldman Sachs Group Inc. conference on Wednesday that he expects to have all required authorizations by the end of this month to convert the derivatives he used to build part of the Commerzbank stake into shares. That would give UniCredit close to 30% of the German lender.

“We’ll see if we consolidate the 30%,” Orcel said at the conference. If UniCredit decides to do so, “that 30% stake comes with rights and influence.”

He said UniCredit had earned the right to be patient with its stake and take its time, but cautioned that a continued stalemate wasn’t in the interest of either side. 

“If no one wants to talk, then we are going to have a situation where we are stalling for a long period of time, and I don’t think that is in the best interest of Germany, in the best interest of Commerzbank, and not for us,” Orcel said.

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