Italy’s UniCredit sets Commerzbank bid in the air

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Italy’s UniCredit sets Commerzbank bid in the air

Italian multinational lender, UniCredit, headquartered in Milan, had made an informal bid for Germany’s Commerzbank, though there had not been any reply so far, as the German lender appeared to be reluctant to engage in a merger negotiation so soon after collapsing its merger talks with the Deutsche bank, at least four people with direct knowledge regarding the subject-matter had unveiled on Monday, the 24th of June 2019.

Besides, the Italian lender with branches in more than 17 countries had completed preliminary preparations for a potential acquisition of Commerzbank and engaged Lazard and its banker, Joerg Asmussen, a former German Deputy Minister to oversee the bid, people with knowledge regarding the UniCredit bid had told earlier on May.

Latest plan of the largest lender of Italy, UniCredit would likely to allow to shift its focus away from its besieged domestic market, which had been a core strategy of UniCredit Chief Executive Jean-Pierre Mustier. Nonetheless, the Commerzbank, which had engaged Goldman Sachs and Rothschild to oversee the financial terms of its merger deal had yet to respond on UniCredit’s offer, one of the sources said.

Apart from that, another source had added that UniCredit had been asked to put its bid on hold, as the German lender had not yet been prepared to engaged in to another merger talk so soon after a collapsed merger deal with Deutsche bank last month.