Frankfurt-based Deutsche Bank Chairman Paul Achleitner is speaking with top shareholders about a potential merger with cross-town rival Commerzbank, Bloomberg reported.
Achleitner has also discussed a possible merger with key German officials in recent months. There have been no formal talks between the two German lenders, and a deal is not considered to be imminent, sources told Bloomberg.
Investors have reportedly expressed concern that, given Deutsche Bank’s embattled share price and sensitive financial situation, a merger with Commerzbank could trigger a capital increase and hefty write-downs. Any synergies generated from cutting retail outlets in the German market would likely be met with resistance from labor unions due to extensive job cuts, Bloomberg speculated.
Speculation about a merger of the two German lenders—or of one of them with an international competitor—has increased in the past year after private-equity firm Cerberus Capital took a stake in both banks.
Full Content: Bloomberg
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