CRZBY - Commerzbank AG

Other OTC - Other OTC Delayed Price. Currency in USD
4.0100
-0.1100 (-2.67%)
At close: 3:50PM EDT
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Previous Close4.1200
Open3.9400
Bid0.0000 x 0
Ask0.0000 x 0
Day's Range3.8880 - 4.0700
52 Week Range3.1100 - 9.2900
Volume165,444
Avg. Volume115,872
Market Cap4.923B
Beta (5Y Monthly)1.68
PE Ratio (TTM)5.05
EPS (TTM)0.7940
Earnings DateN/A
Forward Dividend & Yield0.22 (5.52%)
Ex-Dividend DateMay 22, 2019
1y Target Est4.13
  • Reuters

    INSIGHT-Banks struggle to ride to the rescue in Europe's cash crunch battle

    MILAN/MADRID/FRANKFURT, March 24 (Reuters) - Corrado Sforza Fogliani is on the frontlines of European efforts to keep the region's economy alive amid the coronavirus pandemic. Buried in paperwork and with Rome and banking lobbies still at odds over who should be on the hook for defaults when a six-month debt holiday ends, Banca di Piacenza's loan officers have only been able to process a fraction of the 1,000 applications they have received.

  • Bloomberg

    Deutsche Bank Gets Relief as Germany Lowers a Capital Buffer

    (Bloomberg) -- Germany’s financial watchdogs eliminated a key capital requirement for the country’s banks to keep credit flowing and give flexibility to lenders such as Deutsche Bank AG and Commerzbank AG that have been hit hard by the recent selloff in stocks and credit risk.The countercyclical capital buffer, meant to strengthen banks during good times for a downturn, will be cut to 0% starting on April 1 and remain there until at least through December, the Finance Ministry said in a joint statement with financial supervisor BaFin and the Bundesbank. As a result, banks will be able to release more than 5 billion euros ($5.5 billion) of capital they were in the process of building up.That brings the volume of excess capital that German banks have on hand to digest losses and keep lending to about 225 billion euros, according to people familiar with the matter. That includes 120 billion euros of capital that the lenders held on top of their regulatory demands and 100 billion euros that the European Central Bank freed up last week, said the people, who spoke on condition of anonymity.After more than a decade of tightening financial strength requirements, bank regulators around the world are loosening the reins to prevent the economy from seizing up. The task for banks is daunting as many corporate clients are at risk of defaulting on loans while others will probably require additional funds as supply chains are disrupted, stores and restaurants shut down and public life grinds to a halt.“The move shows how critical the situation is in Europe,” ABN Amro Bank NV strategist Tom Kinmonth wrote in a note. “German regulators fought tough competition for a long period to raise the buffer and now have to remove it almost straight away.”ECB Freed Up $112 Billion at Banks to Bolster Credit Amid VirusThe ministry met BaFin as well as Germany’s central bank last week to discuss eliminating the buffer, Bloomberg reported at the time.German banks are well capitalized on the whole and the industry isn’t showing liquidity bottlenecks, according to the statement.The buffer applies to the German operations of banks, meaning those lenders with the biggest focus on the country will feel the most relief. Deutsche Bank AG, which has one of the most international footprints among German lenders, started the year with a countercyclical capital buffer of 0.08% while smaller competitor Commerzbank AG had a 0.12% requirement.German banks as well as their European competitors presented their regulators with a long list of demands last week to help them weather the fallout from the virus. The ECB loosened several capital demands on Thursday and nudged national authorities to follow suit on their own requirements.“One of the justifications to remove the buffers is to ‘free up lending capacity’,” wrote Kinmonth. “However, more realistically, banks will now try to actively reduce their provided credit lines” given the increase in risk.(Updates with capital reserves in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Oil Slumps to Lowest Since 2016 as Demand Collapse Triggers Rout
    Bloomberg

    Oil Slumps to Lowest Since 2016 as Demand Collapse Triggers Rout

    (Bloomberg) -- Oil’s spectacular collapse deepened as widening global efforts to fight the spread of the coronavirus looked set to trigger the most severe contraction in annual demand in history.Global benchmark Brent crude fell more than 12.5% after Saudi Aramco’s chief financial officer said the company is “very comfortable” with oil at $30 a barrel. Demand for fuels is falling off a cliff as a result of global restrictions to prevent the spread of virus, with gasoline futures reaching their weakest level since at least 2005.Even a massive emergency move by the U.S. Federal Reserve to cushion the world’s biggest economy just added to the fear gripping markets. Forecasts for global oil use are being cut dramatically as government measures to contain the spread of the pandemic restrict the movement of people and throw supply chains into chaos. At the same time, giant producers are unleashing a flood of supply after the disintegration of the OPEC+ alliance.“Oil prices remain in freefall,” Commerzbank analysts including Carsten Fritsch wrote in a report. “The more countries ‘freeze’ public life, close their borders and cancel flights, the greater the impact will be on oil demand.”Oil traders, executives, hedge fund managers and consultants are revising down their estimates for global oil demand. The growing fear is that consumption, which averaged just over 100 million barrels a day in 2019, may contract by the most ever this year. That would easily outstrip the loss of almost 1 million barrels a day in 2009 and even surpass the 2.65 million barrels registered in 1980, when the world economy crashed after the second oil crisis.Travel restrictions across the globe tightened further over the weekend, with the U.S. extending its travel ban to include Britain and Ireland. Australia said anyone entering the country must self-isolate for two weeks, Spain imposed a lockdown and France closed cafes and restaurants.New York City limited restaurants and bars to takeout and delivery service, and shut nightclubs, movie theaters and concert venues. The U.S. Centers for Disease Control and Prevention recommended postponing any events with more than 50 people for the next eight weeks.The Fed cut its benchmark rate by a full percentage point to near zero and will boost its bond holdings by at least $700 billion. The move could trigger a fresh round of monetary easing around the world as countries look to keep money flowing as economic activity grinds to a halt. It wasn’t enough to calm markets though as U.S. equity futures hit limit down.\--With assistance from Sharon Cho, Dan Murtaugh, Ramsey Al-Rikabi, Andrew Janes, James Thornhill, Saket Sundria and Mike Jeffers.To contact the reporter on this story: Alex Longley in London at alongley@bloomberg.netTo contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net, Pratish NarayananFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    UK's response to virus helps European banks recover from record lows

    European banks took heart from the Bank of England's plan to defend Britain's economy from the effects of the coronavirus outbreak, pushing stock prices up and the cost of insuring against default down. The move raised expectations for a similar response from the European Central Bank on Thursday, driving the euro zone banks index 1.5% higher and putting them on track for their first gain in two weeks. Britain's finance minister, Rishi Sunak, said he would do whatever it took to protect the UK economy from the global epidemic, shortly after the BoE slashed interest rates and gave banks permission to tap capital reserves in a stimulus package aimed at thwarting recession.

  • China Posts Weakest Factory Activity on Record
    Bloomberg

    China Posts Weakest Factory Activity on Record

    (Bloomberg) -- Activity in China’s manufacturing sector contracted sharply in February, with the official gauge hitting the lowest level on record, highlighting the devastating impact of the coronavirus on the economy and raising the risk of a worsening global stock rout.The manufacturing purchasing managers’ index plunged to 35.7 in February from 50 the previous month, according to data released by the National Bureau of Statistics on Saturday, much lower than the median estimate of economists. The non-manufacturing gauge also fell to its lowest ever, 29.6. Both were well below 50, which denotes contraction.The coronavirus outbreak that started in China is spreading to multiple continents, with the threat of a pandemic tipping U.S. stocks Friday into the worst rout in any week since October 2008. With China, the world’s largest exporter already operating far below capacity as millions of workers and consumers remain quarantined, the data underline the scale of the task to return output to normal at a time when global growth is under threat.“The sharp drop in China’s manufacturing PMI in February reinforces our view that the normalization in economic activity will be delayed,” as can be seen in high-frequency data, said Xing Zhaopeng, an economist at Australia & New Zealand Banking Group. “There’s scant chance for a V-shaped rebound -- the authorities are using targeted aids more than stimulus to stabilize the economy and that will lead to a gradual bounce.”The result will shock markets on Monday, according to Iris Pang at ING Bank NV in Hong Kong, who said the yuan could weaken through 7 to the dollar. An index of the biggest 300 Chinese firms listed on the Shanghai and Shenzhen exchanges lost more than 5% in the trading week ended Friday, the most since April last year.pic.twitter.com/FrDKmJGaJN— Tom Orlik (@TomOrlik) February 29, 2020 The collapse in economic activity seen in the data was largely due to virus control measures that have made it hard for workers to travel back after Lunar New Year, and left factory owners with limited raw materials to restart production. The key for any recovery this quarter will be how soon factories, companies and people can return to normal, but the government must balance that with the need to stop further infections.Progress on that front has been made in recent weeks, with Bloomberg Economics estimating Chinese factories were operating at 60% to 70% of capacity this week. The statistics bureau said Saturday that as of Feb. 25, the work resumption rate at mid- and large-enterprises in the PMI survey was 78.9%, and will rise to 90.8% by the end of next month. At medium- and large-scale manufacturing companies, it was 85.6% and will rise to 94.7% by end-March, the NBS said.However, even if companies have restarted that doesn’t mean that they are back at full capacity, or that the logistics systems in China are working normally. The services sector has taken a hard blow as most businesses rely on human interaction, which is constrained by tight control of people’s mobility within and across cities. The indexes for construction and services both plumbed record lows in data from 2012.What Bloomberg’s Economists Say...“The data confirm the worse fears about a juddering halt in China’s economy in the first quarter, with significant spillovers to the region and the world.”The PMI should recover a little in March, but the damage will be far from being unwound and support from the government and central bank will strengthen, including more fiscal support, cuts to reserve requirement ratios for banks and lower borrowing costs.\-- Chang Shu, David Qu, Tom OrlikSee here for full note“Most people were comparing the impact of the coronavirus with that of SARS, but I think it is on par with that of the financial crisis in 2008,” said Larry Hu, head of China economic research at Macquarie Securities Ltd. “The shock brought by the coronavirus is huge and the situation looks really bad in the short-term,” although there will be a rebound in March and a significant recovery in the second quarter, he said.The virus outbreak has prompted economists to scale back their estimates for China’s expansion this quarter, with the median forecast at 4.3%. Analysts are split on whether the economy will suffer a short-term slide that’s swiftly reversed as the virus is brought under control, or a longer-lasting slump.Zhou Hao, an economist at Commerzbank AG in Singapore, expects a rebound will start from March, but he said that what the market is concerned about is how significant the recovery will be, and 45 in the manufacturing gauge would be a key level to watch.“It could be around that level but am uncertain that it will be higher. China now seems to stabilize, as it is widely expected that the manufacturing restart rate will be 80% by the end of March, but in other places, the outbreak is spreading, posing new risks,” he said.In the last week there has been a jump in infections in Japan and South Korea, two countries whose economies and supply chains are intricately linked with China. If the outbreaks there lead to substantial shutdowns for businesses, the economic effects of the coronavirus will last even longer, even if China gets back to normal.China’s manufacturing activity may be worse than the official data reflect, Lu Ting, chief China economist at Nomura Holdings Inc. in Hong Kong, wrote in a note to clients. The distortion is caused because lengthier delivery times due to the coronavirus are actually pushing up the headline number, Lu said.Longer delivery times usually indicate higher demand but in this case it was “due to travel bans instead of good business,” according to Lu.(Updates with economist’s comment in last two paragraphs.)\--With assistance from Miao Han and Tomoko Sato.To contact Bloomberg News staff for this story: Lin Zhu in Beijing at lzhu243@bloomberg.netTo contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, James Mayger, Shamim AdamFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • European stocks end sharply lower as virus fears continue to reverberate
    MarketWatch

    European stocks end sharply lower as virus fears continue to reverberate

    European stocks drifted lower in volatile trading on Tuesday as markets failed to set a floor after the pounding they took over the spread of the coronavirus in Italy and South Korea

  • Bloomberg

    At Last, Italy Tries a $5.3 Billion Bank Deal

    (Bloomberg Opinion) -- Italian banks embarking on a round of consolidation was always a matter of when, not if. Meager profitability, a fragmented industry and a desperate need for investment are obvious ingredients for M&A. Lenders have rid themselves of most of the bad loans that crippled Italy’s banks after the financial crisis, so dealmaking should be unhindered.Intesa Sanpaolo SpA’s surprise $5.3 billion offer for a smaller Italian rival in a four-way carve-up may not have been what investors had in mind. Intesa is already Italy’s biggest bank and its target, Unione di Banche Italiane SpA — the country’s fourth-largest — was seen as more of an acquirer of weaker rivals than a target.But the deal may provide the jolt the European industry needs. Almost a year has passed since the failed effort to combine Germany’s Deutsche Bank AG and Commerzbank AG through a more complex, risky deal. The completion of a simpler union could embolden chief executives elsewhere in the continent too.Intesa’s unsolicited all-stock bid, at a 25% premium to the closing price, would make it one of the biggest European banking mergers since the Lehman crisis. UBI, which hasn’t commented on the approach, was caught off guard. Just hours earlier in London, it presented its strategy as a standalone company.A deal would move Intesa into the group of top 10 European lenders, measured by operating income. Though UBI investors could argue for juicier terms, the strategic and financial rationale for a deal is compelling. The European Central Bank’s initial positive feedback on the merger should improve Intesa CEO Carlo Messina’s chances of persuading his UBI counterpart.A takeover would create a joint business with a market share of about 21% in loans and deposits, 23% in asset management and 19% in life insurance. To avert antitrust concerns, Intesa has agreed to sell as many as 500 branches to a regional lender and to dispose of insurance activities too. The banks have similar business models and the 5,000 anticipated job cuts are expected to be voluntary (3,400 job losses have already been announced by the banks). The deal would bring 510 million euros of cost savings and 220 million euros of revenue synergies, according to Intesa. The buyer is promising to pay a cash dividend of 0.2 euros per share for 2020, and higher from 2021, above current consensus estimates. To cover the deal’s cost, Intesa expects to benefit from about 2 billion euros of negative goodwill to help pay for integration expenses and a deeper clean-up of bad loans.Investors like what they’re hearing. A bond UBI sold five weeks ago has delivered an impressive 12% return, making it the best-performing bond in Europe this year. UBI shares rose as much as 29% on Tuesday, above the offer price; Intesa shares rose as much as 3.6%.Some investors had hoped that Intesa would make a bolder move to diversify its business away from Italy and to reduce its reliance on lending income. But support from the ECB for the UBI approach would at least show the regulator is willing to countenance much-needed M&A in Italy, and Europe.Messina’s unexpected move might inspire a broader consolidation. As sub-zero interest rates persist and economies sputter, European banks’ low profitability is unlikely to improve. Cross-border deals are still complicated by different national insolvency laws and the absence of a common European deposit-insurance scheme. At least Messina is doing something.To contact the author of this story: Elisa Martinuzzi at emartinuzzi@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Takeovers Alone Can't Fix Active Fund Industry

    (Bloomberg Opinion) -- Jupiter Fund Management Plc is getting something of a bargain in its purchase of Merian Global Investors, based on the post-announcement pop in the acquiring firm’s share price. Odd, then, that the deal has a clause that could see a dramatic drop in the takeout price if the target firm stumbles in the next two years.Jupiter is paying 370 million pounds ($482 million) for Merian, which is owned by TA Associates Management. The Boston-based private equity firm agreed to pay 600 million pounds for Merian a bit more than three years ago, backing its managers in a buyout from Old Mutual Ltd. So it’s taking a hit on its initial investment.Moreover, Jupiter has secured what it calls “downside protection” if Merian’s assets under management decline by the end of 2021. The purchase price falls by 20 million pounds if assets decline by 15%, by 40 million pounds if the drop is 25%, and the full 100 million pounds if Merian manages 40% less money. Reductions between those levels will be applied proportionately, while Merian’s management can earn an additional 20 million pounds by increasing revenue.It’s a smart hedge for Jupiter, given the inability of many active fund managers to stop money from walking out of the door. Jupiter itself has had seven consecutive quarters of net outflows, and saw customers withdraw 4.5 billion pounds last year, so the value of its assets under management was only defended by rising global market values.And Merian had 25.7 billion pounds under management at the time of its buyout in December 2017; based on Monday’s offer documents, it’s down to a bit more than 22 billion pounds now.Once the deal is completed, TA Associates will end up with about 16% of Jupiter, while Merian’s management will own about 1% of the firm. It’s a case of back to the future for the buyout firm. In 2007, TA Associates backed Jupiter’s managers and took a 22% stake in the London-based firm when it was spun off from Commerzbank AG. It maintained a stake in Jupiter until 2014, when it offloaded its final 10.6% holding. So the private equity outfit still has skin in the U.K. active management game, which is a vote of confidence of sorts.The deal will mean Jupiter has more than 65 billion pounds of assets under management, an boost of more than 50% from the 43 billion pounds it currently has. The transaction offers “substantial cost efficiencies,” which Jupiter says will eventually allow Merian to deliver an operating margin of at least 50%, handily outstripping the 43% margin Jupiter generated in 2019.Jupiter’s shares jumped as much as 10.4% in the wake of the deal’s announcement, driving them to their highest since July 2018. But it’s hard to shake the suspicion that the insurance clause Jupiter has included in the transaction — and which the vendor has accepted — suggests that takeovers alone can’t fix what ails the active fund management industry. What’s needed is a solid period of outperformance against benchmarks. Otherwise investors will continue to vote in favor of low-cost passive products, and will be right to do so.To contact the author of this story: Mark Gilbert at magilbert@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Are You An Income Investor? Don't Miss Out On Commerzbank AG (ETR:CBK)
    Simply Wall St.

    Are You An Income Investor? Don't Miss Out On Commerzbank AG (ETR:CBK)

    Today we'll take a closer look at Commerzbank AG (ETR:CBK) from a dividend investor's perspective. Owning a strong...

  • Reuters

    Deutsche Bank delays raises to fixed pay after changing annual date for pay adjustments

    Deutsche Bank AG has delayed raises to fixed pay compensation at the German bank by three months until after April 1, citing the need to further improve cost management, according to a memo seen by Reuters on Tuesday. "After thorough discussions, we on the Management Board have taken the decision that, from 2020, any fixed pay adjustments in connection with the annual review or promotion process will be effective April 1 (not retroactively effective as of January 1)," Christian Sewing, the bank's chief executive, wrote in the memo. The memo added that the bank will continue to review fixed pay at regular intervals and make adjustments as necessary.

  • Women lose ground in German finance supervisory boards
    Reuters

    Women lose ground in German finance supervisory boards

    Women held 22.8% of supervisory board seats at banks and 22.2% of those at insurance companies, down from 23.2% and 22.5% respectively the year before, according to the study by the German Institute for Economic Research, or DIW. The decline contrasts with other industries, where women had an overall 28.2% share of seats, an improvement on the previous year's 26.9, DIW said.

  • Those Who Purchased Commerzbank (ETR:CBK) Shares Five Years Ago Have A 50% Loss To Show For It
    Simply Wall St.

    Those Who Purchased Commerzbank (ETR:CBK) Shares Five Years Ago Have A 50% Loss To Show For It

    Ideally, your overall portfolio should beat the market average. But even the best stock picker will only win with some...

  • Huntington Plans to Shutter Branches in Giant Eagle Stores
    Zacks

    Huntington Plans to Shutter Branches in Giant Eagle Stores

    In order to consolidate branch footprint, Huntington Bancshares (HBAN) plans to cut down number of branches by 30 in Giant Eagle Stores.

  • Moody's

    Bosphorus CLO V Designated Activity Company -- Moody's assigns definitive ratings to nine classes of notes issued by Bosphorus CLO V Designated Activity Company

    Rating Action: Moody's assigns definitive ratings to nine classes of notes issued by Bosphorus CLO V Designated Activity Company. Global Credit Research- 12 Dec 2019. Frankfurt am Main, December 12, 2019-- ...

  • Commerzbank managers keeping staff in dark on overhaul, union says
    Reuters

    Commerzbank managers keeping staff in dark on overhaul, union says

    Commerzbank <CBKG.DE> managers are keeping employees in the dark about the German lender's overhaul plans, a union representative said on Wednesday. The state-backed bank earlier this year announced plans to restructure after a failed merger attempt with Deutsche Bank <DBKGn.DE>.

  • Moody's

    mBank Hipoteczny S.A. -- Moody's announces completion of a periodic review of ratings of mBank S.A.

    Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of mBank S.A. Madrid, November 22, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of mBank S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.

  • Moody's

    Bosphorus CLO V Designated Activity Company -- Moody's assigns provisional ratings to nine classes of notes to be issued by Bosphorus CLO V Designated Activity Company

    Rating Action: Moody's assigns provisional ratings to nine classes of notes to be issued by Bosphorus CLO V Designated Activity Company. Global Credit Research- 19 Nov 2019. Frankfurt am Main, November ...

  • Moody's

    Hypothekenbank Frankfurt AG -- Moody's announces completion of a periodic review of ratings of Commerzbank AG

    Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Commerzbank AG and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.

  • Commerzbank warns of profit drop for 2019
    Reuters

    Commerzbank warns of profit drop for 2019

    Commerzbank AG <CBKG.DE> on Thursday said its 2019 profit would be lower than last year, partly due to the impact of euro zone monetary policy that has pressured margins. The state-backed bank, which is restructuring after a failed merger attempt with Deutsche Bank <DBKGn.DE>, also cited trade conflicts and expectations for a higher tax rate in the fourth quarter for the profit downgrade. "We deliberately set long-term success above short-term return targets," Chief Executive Officer Martin Zielke said.

  • Analyst Tears Up New Apple AirPods to Prove Their Power Source
    Bloomberg

    Analyst Tears Up New Apple AirPods to Prove Their Power Source

    (Bloomberg) -- A Commerzbank AG analyst has gone to great lengths to prove that Apple Inc.’s latest AirPods Pro earbuds are powered by batteries made by German manufacturer Varta AG.Stephan Klepp visited his local Apple store and bought a pair of the $249 earphones, before dismantling them to find a Varta lithium-ion micro-battery inside, he wrote in a note.“Overall, our tear-down puts the speculation around Apple ultimately to rest,” Klepp said in his report, which included pictures of the dissected device and its power source.Varta and Apple declined to comment.Varta shares have risen to the highest since being re-listed in 2017 on speculation that Apple, the market leader for wireless earbud headphones, may be behind numerous capacity increases announced by the German manufacturer. To date, neither company has confirmed the relationship.Klepp has a buy recommendation on Varta, whose shares rose 1.8% in late Frankfurt trading, extending gains after soaring more than 7% in each of the previous two sessions.To contact the reporter on this story: Richard Weiss in Frankfurt at rweiss5@bloomberg.netTo contact the editors responsible for this story: Daniel Schaefer at dschaefer36@bloomberg.net, Paul JarvisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Is Commerzbank (CRZBY) a Profitable Pick for Value Investors?
    Zacks

    Is Commerzbank (CRZBY) a Profitable Pick for Value Investors?

    Commerzbank (CRZBY) stock may be a good choice for value-oriented investors right now from multiple angles.

  • Osram Takeover Battle Set for Next Round After AMS Bid Setback
    Bloomberg

    Osram Takeover Battle Set for Next Round After AMS Bid Setback

    (Bloomberg) -- The battle for control of Osram Licht AG is set to enter a new round after Austria’s AMS AG vowed to keep fighting after a sweetened 4 billion euro ($4.4 billion) offer failed.AMS, a supplier to Apple Inc., will seek a regulator nod to raise its 19.99% stake in Osram. As the biggest shareholder in the German lighting maker, AMS’s approval has become key for any would-be rival bidder. Osram has said private equity investors Bain Capital and Advent International are inspecting its books with a plan to make an offer.“We doubt private equity will launch a superior bid given AMS has built up a 19.99% stake in the meantime,” Commerzbank said in a note. “While we cannot rule out that AMS might make another push, timing is yet unclear, so we attach a greater likelihood to a potential cooperation only.”German takeover law doesn’t allow a new bid within one year unless the target gives its consent, as well as stipulating that an offer needs to be made if an investor crosses a 30% ownership threshold. AMS’s pursuit took a setback Friday, when it announced its offer failed to attract enough support from shareholders. Osram investors had tendered only 51.6% of their shares, short of a 62.5% threshold.Osram fell as much as 4.5% to 39 euros, the most in two months, while shares of AMS declined as much as 5.8%.AMS’s failed bid extends a period of protracted uncertainty for Osram, which emerged as a takeover target last year after warning trade friction and a cooling of the car industry had clouded the outlook for 2019. The former division of Siemens AG gets about half of its revenue from the automotive sector. Subsequent profit warnings further eroded investor confidence, sending shares tumbling until the takeover battle took hold.Osram confirmed talks with Bain and Carlyle, which was later replaced by Advent, in February after they were first reported by Bloomberg News. A bidding war broke out in July when AMS lobbed a higher offer. The Austrian company has drawn criticism from Osram unions and employee representatives on the board, as well as management due to concerns about promised synergies as well as the deal’s financing.Following the months-long takeover battle against private equity suitors, AMS said the combination remains compelling and pledged to continue to “explore strategic options” for a takeover. Bain and Advent are inspecting Osram’s books “with a view to submitting an offer,” Osram said in a separate statement.AMS, a supplier of facial recognition technology for Apple’s iPhone, has said it would invest in the company’s Regensburg, Germany site that makes high-tech chip components, but would sell the digital division that makes lighting controls, stage and theater lights.Century-old Osram, based in Munich, started out making light bulbs, pivoting in recent years under Chief Executive Officer Olaf Berlien to products like iris scanners and infrared emitters. The refocus was contentious, leading to a boardroom clash over strategy and a public spat with Siemens before the German engineering giant sold down its stake.To contact the reporter on this story: Oliver Sachgau in Munich at osachgau@bloomberg.netTo contact the editors responsible for this story: Tara Patel at tpatel2@bloomberg.net, Elisabeth Behrmann, Jennifer RyanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    Second Activist Builds Aareal Bank Stake, Eyeing Tech Unit Sale

    (Bloomberg) -- A second activist investor has built a position in Aareal Bank AG and plans to support a full sale of the German real estate lender’s software business.Petrus Advisers Ltd. owns just over 2% of Aareal Bank, the London-based investment firm’s founder, Klaus Umek, said by phone Tuesday.“We think the software unit should be sold -- there’s more potential in there,” Umek said.Aareal Bank is currently working on a sale of as much as 30% of its software and services division Aareon, people with knowledge of the matter said in July. After Bloomberg News reported the stake sale plans, activist hedge fund Teleios Capital Partners called on the bank to sell the entire business. Analysts have valued the unit at about 550 million euros ($599 milllion).German banks are streamlining businesses under pressure in an overcrowded market where lenders are grappling with negative interest rates. Selling the software division could help Aareal to deal with difficulties in its U.K. operations, where non-performing loans for shopping centers have been piling up.Shares of Aareal Bank have risen 2% this year, giving the company a market value of about 1.65 billion euros. A spokesman for Aareal Bank declined to comment.Activists have been stepping up pressure on European banks. Petrus said last week it has increased its holding in Commerzbank AG’s listed online subsidiary, Comdirect Bank AG, to just over 3%. Cevian Capital revealed a stake in Finland-based lender Nordea Bank Abp in December. Investor Edward Bramson’s Sherborne Investors Management LP became one of the biggest Barclays Plc shareholders last year and has slammed the new chairman’s strategy.\--With assistance from Scott Deveau.To contact the reporters on this story: Jan-Henrik Förster in London at jforster20@bloomberg.net;Matthias Wabl in Vienna at mwabl@bloomberg.netTo contact the editors responsible for this story: Dinesh Nair at dnair5@bloomberg.net, Ben Scent, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Moody's

    mBank Hipoteczny S.A. -- Moody's changes outlook on mBank's A3 long-term deposit ratings to negative

    Moody's Investors Service has today affirmed mBank S.A.'s (mBank) long-term deposit ratings at A3 and changed the outlook to negative from stable. Concurrently, the bank's Adjusted Baseline Credit Assessment (BCA) was affirmed at baa2, its Counterparty Risk Assessments (CR Assessments) at A2(cr)/Prime-1(cr) and its Counterparty Risk Ratings (CRRs) at A2/Prime-1. BCA baa2) on 20 September that it intends to sell its majority stake in mBank.

  • Poland's mBank rises on speculation about Commerzbank sale plans
    Reuters

    Poland's mBank rises on speculation about Commerzbank sale plans

    Shares in mBank <MBK.WA> hit their highest level since early August on Tuesday, partly in response to speculation that Poland's fourth largest lender by assets is up for sale. Last week, Commerzbank <CBKG.DE>, partly owned by the German government after a bailout and struggling to generate profits, said it aims to sell a stake in mBank in which it has a 69.3% shareholding worth about $2.56 billion. "I expect there will be a significant interest in mBank.