It struck, as the us financial investor Cerberus invested three years ago in the German banking market. The US Investor bought a five percent stake in Commerzbank, then three percent of the German Bank, a Landesbank and a small Bank in southern Germany. In the local financial sector, some came to wonder: Has Cerberus about secret knowledge? The investors recognize the top name hell dog just opportunities in the ailing German Bank market, which remain hidden from others?
In the meantime, however, it is clear: at Least with the Investments in Deutsche Bank and Commerzbank Cerberus has so far not lucky. The Cerberus was in favour of merger of the two money houses remained. Else has turned in two institutions, little for the Better, at least with regard to the share price, which have halved since the initial more than – for Cerberus in a book loss of several Hundred million euros, is expected to be in the balance sheet, roughly estimated.
Now, however, the Americans lose patience and increase public pressure – at least at Commerzbank. Perhaps even to their own investors, not inaction to blame. In a five-page letter to the Supervisory Board, which the SZ and several other media exists, called Cerberus for a change of course, and expresses his disappointment about the Management: “the precarious Situation of The Commerzbank now requires quick and decisive Action.” It was involved at the time, new ideas and energy, so that the Institute could go in a better future. And it was “deeply concerned” that the Executive Board and the Supervisory Board refused to face the facts and recognize the seriousness of the situation. You have failed over the years, blatantly, to take appropriate counter-measures. Almost every sentence in the Letter is a slap in the face.
In a first step, Cerberus demanded two seats on the Supervisory Board. This is actually something more, as a proportion to owners of this size is entitled to. Normally, shareholders receive only ten per cent, to a seat on the Supervisory Board. Cerberus looks but, apparently, no other way out: This will help, urgent Changes in the strategy to address. The financial investor to assume that his demands for more investors to connect.
The Bank should reject the requirement that the Supervisory Board seats, the threat of revolt is a Shareholder, Cerberus. It is likely to be the first Time that Cerberus appearance as a so-called activist shareholder. Activist shareholders typically use aggressive campaigns to exclude, for example, from their point of view incompetent Manager of the economy. At the meeting of the Supervisory Board this Wednesday, the five-page Letter will therefore be on the Agenda.
“Expressions of opinion by shareholders – even critical – to the Bank carefully.”
The Bank stated its awareness that the development on the stock exchange was not satisfactory. “Expressions of opinion by shareholders – even critical nature – on the Bank carefully and will also, in the future, in internal discussions, and in dialogue with their owners to be incorporated,” according to Commerzbank.
Not only Cerberus is dissatisfied. The Federal government is also involved since the financial crisis, with 15.6 per cent in Commerzbank, follows the Events in Frankfurt for some time, apparently, with growing concern. Especially because of the Corona-crisis, the loan losses significantly is likely to increase. In the autumn of 2019, the Federal government had commissioned the consulting firm Boston Consulting to examine the strategy of the Commerzbank – an unusual procedure. The same time had the Commerzbank once again, a new strategy is prescribed, for the fourth Time in ten years. To be permanently profitable, wanted to Chairman of the Board Martin Zielke swipe still more, the subsidiary Bank in Poland, sell and integrate a direct Bank, Comdirect. In order to be on the right path, he had said in mid-February at the annual press conference of the group.
While the competition led to a series of castle stores, noted Commerzbank on the network
Possibly, but Zielke needs to rework, it is now urgent in some points. The sale of the Polish subsidiary has rejected the Bank again. The consultants of Boston Consulting recommend apparently more drastic measures, such as the news Agency Bloomberg wrote, in February, for example, a further branch closures. Zielke, since a few weeks also President of the banking Association, pursued a long-exceptionalism: While the competition led to a series of castle stores, noted Commerzbank on the network and tried aggressively to attract new customers.
In the case of Deutsche Bank, Cerberus behaves, however, a quiet, at least publicly. There, the Americans had completed in the summer of 2018, an unusual consulting contract. For example, how the Bank manage their liquidity more efficiently to. As Deutsche Bank announced, at its recent annual General meeting, on the question of a shareholder, paid the Beratungsarm from Cerberus for a total of around 15 million euros. Since the beginning of the year the consultancy agreement is terminated again. The advice was strictly been apart of Cerberus activity as an Investor. In addition, the payment market had been usual, had communicated to the Bank. Commerzbank had rejected, according to reports by Cerberus to advise.