UniCredit is reportedly ready to make a rival bid for Commerzbank if merger talks with fellow German lender Deutsche Bank fail.
The Financial Times, citing people familiar with the matter, reported Thursday that the Italian bank was prepared to make a multibillion-euro offer for a sizable stake in Commerzbank.
Commerzbank would be merged with German Unicredit subsidiary HypoVereinsbank, the FT reported, and the combined entity would be based in Germany while UniCredit maintains its headquarters and listing in Milan.
UniCredit and Commerzbank were not immediately available for comment when contacted by CNBC.
Shares of Commerzbank were up over 5 percent in premarket trade.
While the German government’s stand on this remains unclear, it is speculated that a Deutsche Bank-Commerzbank tie-up would be seen as favorable as it would create a domestic banking champion. A deal with UniCredit would mean a foreign lender taking control of Germany’s second-largest bank.
You can read the full Financial Times report here.
