Germany plans to reduce Commerzbank stake as stability restored
Adds bankers expect a market sale in last paragraph.
Sept 3 (Reuters) -Germany intends to reduce its stake in Commerzbank AG CBKG.DE as the lender is stable again years after its rescue in the global financial crisis, the government said on Tuesday.
"The bank's economic situation has steadily improved since 2021. The federal government is responding to this positive development by reducing its stake in Commerzbank and beginning the exit," said Eva Grunwald, managing director of the finance agency.
The state holds a 16.5% stake in the German firm worth about 2.6 billion euros ($2.87 billion) through its national bank rescue fund. The government did not specify by how much it would reduce its stake, nor how it would sell the shares.
"The exact procedure, the volume and also the timing are still being determined in view of the market environment", said a spokeswoman for the Finance Agency that handles the government's capital market activities.
Commerzbank CBKG.F shares fell in after-hourstrading in Frankfurt, and were down 3.4% on the news.
Since the bailout, Commerzbank has undergone a major overhaul, exiting businesses and slashing its workforce and branch network to restore profit. The bank posted its biggest profit in 15 years in 2023 as it benefited from higher interest rates.
Still, the bank's leadership last month signalled economic headwinds in its home market as loan loss provisions were higher than expected.
Shares have dropped 17% since hitting a 12-year high earlier this year.
An interministerial committee will decide on further steps in due course, according to the statement.
Germany, which still faces a loss on its Commerzbank investment, increased its stake in the lender earlier this year.
The bank in the past has been a potential merger partner for its bigger domestic peer, Deutsche Bank AG, with which it held talks to combine in 2019.
Three banking sources who advise on dealmaking told Reuters they expect the government to sell the shares on the market, adding they were surprised by the news.
($1 = 0.9063 euros)
Reporting by Victoria Waldersee, Ozan Ergenay, Linda Pasquini, Sabine Wollrab and Emma-Victoria Farr; writing by Elisa Martinuzzi. Editing by Jason Neely, Christina Fincher, Alexandra Hudson and Aurora Ellis
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.