Commerzbank Talks Begin as UniCredit Nears Control

Commerzbank's boardroom thaw is gaining momentum as formal talks between Bettina Orlopp and Andrea Orcel, the CEOs of Commerzbank and UniCredit respectively, have begun. This shift marks a significant departure from the frosty public posturing that defined the past several months.

The meeting covered balance-sheet, legal, and risk-related questions tied to the regulatory consolidation expected by the European Central Bank. The ECB has already waved through UniCredit's application for takeover approval, despite initial resistance from Berlin.

Commerzbank's financials are strong enough to back Orlopp's hand in negotiations. In its recent first-half results, the bank reported a record net profit of €1.81 billion, a near-40 percent year-on-year jump, with return on tangible equity at 12.6 percent and a cost-income ratio of 53 percent.

The market has taken notice, with Commerzbank shares advancing 3.4 percent since the results were published and rising 9.7 percent over three weeks. Analysts see room to run, with DZ Bank upgrading its fair value for Commerzbank from €42 to €46 while reaffirming a buy recommendation.