ING Group has approached Commerzbank about a possible tie-up, a German magazine reported on Tuesday, April 16. Manager Magazin, citing unnamed sources, reported that ING made the approach to the German government, which owns a stake in the German lender, and to Commerzbank CEO Martin Zielke. But Zielke declined to engage in formal talks, the report stated.
ING is the second European lender to show appetite for Commerzbank. In early April, the Financial Times reported that Italian rival UniCredit was preparing a rival bid to take control of Commerzbank should merger talks with Deutsche Bank collapse.
A person close to a large shareholder of Deutsche Bank told the Financial Times on Tuesday that the odds of a merger with Commerzbank were shrinking, given the complexity of a potential deal, resistance form staff unions, and the potential need to raise up to €10 billion (US$11.3 billion) of fresh equity. “The odds that a merger will happen have fallen from 80 to 60%,” that person said.
Full Content: Financial Times
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