The CEO of UniCredit says that he will not continue doing business with Commerzbank AG at any cost By Investing.com
Investing.com — UniCredit SpA (LON: ) Chief Executive Officer Andrea Orcel has hinted he may abandon plans to buy Commerzbank AG (OTC:). In a recent interview with Bloomberg Television, when asked if he was ready to give up his pursuit of the German bank, Orcel confirmed that he was ready to do so.
Over the past few months, UniCredit has built a significant stake in Commerzbank (ETR:). Orcel previously stated that it was considering an acquisition.
However, these unexpected moves were not well received by the government in Berlin, and Commerzbank’s senior management also expressed skepticism. These factors created significant obstacles to Orcel’s approach.
In a statement on Tuesday in Davos, Orcel said: “M&A adds value if it’s done under the right conditions, at the right time, in the right way. Otherwise, stay away from it.”
He referred to several past cases where he decided to cut off approaches to other banks because the time no longer seemed right.
Orcel previously stated that he was in no rush to decide on the future of UniCredit’s stake in Commerzbank. He also noted that selling shares is an option.
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