Investing.com — UniCredit SpA (LON:)’s Chief Executive Officer, Andrea Orcel, has indicated that he may abandon plans to acquire Commerzbank AG (OTC:). In a recent interview with Bloomberg Television, when asked if he was prepared to abandon the pursuit of the German bank, Orcel confirmed that he was ready to do so.
Over the past few months, UniCredit has built a substantial stake in Commerzbank (ETR:). Orcel had previously stated that he was considering an acquisition.
However, these unexpected moves have not been well-received by the government in Berlin, and Commerzbank’s senior management has also expressed skepticism. These factors have created significant obstacles to Orcel’s approach.
In a statement made at Davos on Tuesday, Orcel said, “M&A adds value if it’s done at the right terms, at the right time, in the right way. Otherwise stay away from it.”
He referred to several past instances where he decided to terminate approaches to other banks because the timing no longer seemed appropriate.
Orcel has previously stated that he is not in a hurry to decide the future of UniCredit’s stake in Commerzbank. He has also mentioned that selling the stake is an option.
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