financetom
Business
financetom
/
Business
/
Verdi union against Commerzbank cross-border merger regardless of bidder nationality
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Verdi union against Commerzbank cross-border merger regardless of bidder nationality
Oct 12, 2024 5:20 AM

ROME (Reuters) - German trade union Verdi would oppose a cross-border merger for Commerzbank even if the bidder was not an Italian bank like UniCredit, an official said on Saturday.

Berlin was taken aback by UniCredit's swoop to build a large stake in state-backed Commerzbank, a move the Italian bank says could lead to a merger.

Officials told Reuters on Friday that Germany is working to frustrate a possible takeover that could tie Berlin's fortunes to those of heavily indebted Italy.

"(Our opposition) is not due to the fact that (the bidder) is an Italian bank. It could be French or Spanish," Frederik Werning, a Verdi labour union official and a member of the Commerzbank Supervisory Board, said in a interview with Italian broadcaster La7.

"When a merger happens every time they say that nothing will change but one out of two times they don't keep their promise and jobs would be lost both in Germany and in Italy".

The merging banks would for at least two years be preoccupied with integration at a time when Germany needs to boost investment, Werning added.

"If the takeover happens, UniCredit and Commerzbank will have to take care of themselves for years and they will no longer be strong partners for their clients, neither in Italy nor in Germany," he added.

At the heart of Germany's concern is UniCredit's 40 billion euros ($44 billion) holding of Italian government bonds. Commerzbank, which is smaller and financially weaker than UniCredit, also has billions of euros of Italian bonds.

($1 = 0.9143 euros)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Correction: Apollo Closes $1.6 Billion Investment in SCI Capital Partners
Correction: Apollo Closes $1.6 Billion Investment in SCI Capital Partners
Oct 8, 2024
08:34 AM EDT, 10/08/2024 (MT Newswires) -- (Corrects the investment figure in the headline.) Apollo Global Management ( APO ) has closed a $1.6 billion investment in SCI Capital Partners, the companies said Tuesday. The deal was described as a structured continuation vehicle transaction in partnership with funds managed by Apollo to support SCI-owned companies Morton Salt and Reddy Ice,...
Bank of America names Brabazon co-head of global M&A, memo says
Bank of America names Brabazon co-head of global M&A, memo says
Oct 8, 2024
LONDON (Reuters) - Bank of America ( BAC ) has named Eamon Brabazon co-head of global mergers and acquisitions, alongside Ivan Farman, according to an internal email seen by Reuters.  Brabazon, who has been with the bank around nine years, was most recently head of M&A in Europe, Middle East and Africa. The bank said Brabazon advised on some of...
Trump Media Stock Surges as Elon Musk Backs Trump at Pennsylvania Event
Trump Media Stock Surges as Elon Musk Backs Trump at Pennsylvania Event
Oct 8, 2024
Trump Media & Technology Group Corp ( DJT ) stock continued its rally Tuesday after closing higher by over 11% on Monday. The stock rally marks Republican presidential candidate Donald Trump’s return to Butler, Pennsylvania, the site of his July 13 assassination attempt, for a campaign rally with Tesla Inc ( TSLA ) chief Elon Musk, CNBC reports. In Butler, Musk endorsed Trump, including...
Russia blocks instant messaging platform Discord, TASS reports
Russia blocks instant messaging platform Discord, TASS reports
Oct 8, 2024
Oct 8 (Reuters) - Russia's communications regulator has blocked instant messaging platform Discord for violating Russian law, the TASS news agency reported on Tuesday, making the San Francisco-based company the latest foreign technology platform to be restricted in Russia. Discord did not immediately respond to a request for comment. Russia has for several years ordered foreign technology platforms to remove...
Copyright 2023-2026 - www.financetom.com All Rights Reserved