Commerzbank

The Federal Ministry of Finance is demanding binding commitments for a possible takeover of Commerzbank by UniCredit, for example that the legal seat and the executive board remain permanently in Frankfurt and that the bank continue to exist as a stock corporation under German law. Minister Lars Klingbeil has invited UniCredit chief Andrea Orcel to talks; the federal government is also in contact with Commerzbank and the works council. The federal government still holds just over 12 percent of Commerzbank and therefore plays a central role in the further process. » More on finanzen.net

Finance Minister Lars Klingbeil will insist in talks with UniCredit CEO Andrea Orcel that Commerzbank be preserved as a German institution and remain listed on the domestic stock exchange. The government also wants to secure the right to appoint two supervisory board members and demands a commitment to refrain from redundancies to protect lending to small and medium-sized enterprises. UniCredit has recently increased its stake in Commerzbank to almost 50%; a merger would create a bank with more than €1.3 trillion in total assets. Insiders say the ECB is leaning toward approving the transaction. » More on handelsblatt.com

Commerzbank shares are trading near a 52‑week high; the price rise is supported by a share buyback program of up to €1.2bn, an AT1 tender of up to €1.0bn and political concessions from Berlin. Finance Minister Klingbeil has invited UniCredit CEO Andrea Orcel for talks on 14 September after UniCredit increased its stake to just under 50%. Analyst consensus (€41.26) and InvestingPro fair value (€41.11) are slightly below the current price, so a significant premium would depend mainly on a concrete takeover offer; in the short term, an RSI of 72 is a cautionary signal. » More on de.investing.com