Germany’s financial watchdog BaFin has instructed UniCredit to stop running advertising it judged to be “unobjective” in relation to its takeover approach for Commerzbank.
The move comes during a prolonged contest over Commerzbank and follows a UniCredit social media campaign seen across Europe in which the German bank was described as “neglected, uncertain, short-sighted”, reported Reuters.
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It also follows remarks by UniCredit chief executive Andrea Orcel to analysts that Commerzbank’s “current trajectory will put at risk its survival in the medium term,” added the news agency.
In its decision, BaFin said the adverts were provocative and unobjective, and included “speculation regarding the financial situation of Commerzbank.”
The regulator said UniCredit is barred from making statements “that portray the current economic situation of the target company or its subsidiaries and their future prospects in a negative, sensationalist, or unobjective manner”.
In a statement to Financial Times, UniCredit said that the advert “was designed to promote the positive vision we have for Commerzbank, but we fully acknowledge that the translation of one word in the original English statement into German may have led to some ambiguity that allowed it to be misconstrued. We immediately removed the post and explained the facts to Commerzbank and those who inquired.
It added: “Some of the rhetoric used to push back on this transaction has been overly aggressive and highly personal in nature from the outset. It would be in the best interest of all stakeholders for the rhetoric to be toned down so that everyone can focus on the substance of the issue, which is how to build the best possible future for Commerzbank.”
UniCredit has in recent weeks stepped up its effort to acquire Commerzbank by setting out a detailed plan for changes at the German lender, which it has characterised as “a story of operating underperformance”.
It said the plan was needed to tackle “structural weaknesses” that had been concealed by financial tailwinds and warned this could lead to future restructurings at the bank.
The transformation blueprint by UniCredit aims to increase Commerzbank’s net profit to €5.1bn by 2028.
The Italian lender has also outlined the need for Commerzbank to shift away from non-strategic international activities, and increase spending on AI, technology and staff re-skilling.
