Deutsche Bank, Commerzbank Trade Up on Merger Speculation
12 December 2018 - 5:06PM
Dow Jones News
By Patrick Costello
Shares of Deutsche Bank AG (DB.XE) and Commerzbank AG (CBK.XE)
rose in afternoon trading Wednesday following reports that the
German government was involved in talks to simplify a potential
merger between the two lenders.
The discussions--which include Finance Minister Olaf Scholz and
Deutsche Bank Chief Executive Christian Sewing--are focused on
"concrete ways" Germany can facilitate a merger between the two
banks, according to Bloomberg.
These potential measures include amending German tax law to make
a merger between the two banks less costly, Bloomberg reported.
Deutsche Bank traded up 5.9% at 7.87 euros ($8.93) on the news
at GMT 1613. Commerzbank shares were up 5.5% at EUR6.93.
Shares of the struggling Deutsche Bank and Commerzbank are down
year-to-date 50% and 44%, respectively. Commerzbank was pushed out
of the German DAX index in September by the online-payment
specialist Wirecard (WDI.XE).
Deutsche Bank and Commerzbank both declined to comment on the
reports of a potential merger.
Deutsche Bank referred to comments from Mr. Sewing earlier this
year that the bank's priority over the next 18 months will be
improving profitability.
"Once that has happened, we can talk about other things," Mr.
Sewing said in September.
The German Finance Ministry said it does not issue comments on
individual institutions, according to a spokeswoman from the
ministry.
The German Finance Ministry holds over 15% of Commerzbank
shares.
Write to Patrick Costello at Patrick.Costello@dowjones.com.
(END) Dow Jones Newswires
December 12, 2018 11:51 ET (16:51 GMT)
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