By Shares of Commerzbank and ABN Amro saw a boost on Monday following a media report suggesting that Deutsche Bank is eyeing them for possible takeover bids. At 0848 GMT, Commerzbank shares were up 1.6% at EUR11.53, while ABN Amro shares rose 1.1% to EUR13.54. Both stocks had earlier risen over 2% during the session, making them the top gainers among European banking stocks. In contrast, Deutsche Bank shares fell 0.6% to EUR11.98, while the Stoxx Europe 600 Banks index saw a 0.6% decline.
According to Bloomberg, Deutsche Bank is exploring the option of acquiring various European banks, including Commerzbank and ABN Amro. However, the report stated that Deutsche Bank has not yet made any contact with its potential targets.
Deutsche Bank has chosen not to comment on these speculations, and neither Commerzbank nor ABN Amro have provided an immediate response when approached for comment by Dow Jones.
Anke Reingen, an analyst at RBC Capital Markets, mentioned that the likelihood of a significant transaction in the near future is relatively low due to several obstacles. However, she also noted that Deutsche Bank’s motivation behind this potential move seems to be aimed at enhancing its valuation.
“We share the view that Deutsche Bank’s shares are undervalued,” stated RBC, adding that their recommendation to outperform is based on the condition that Deutsche Bank successfully executes its cost plan, delivers returns to shareholders, and presents a more “predictable and balanced story.” RBC believes that these factors will contribute to a potential re-rating of Deutsche Bank’s shares once the economic outlook improves.
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