By Helena Smolak
Commerzbank and ABN Amro shares rose Monday after a media report that Deutsche Bank is looking at them as potential takeover targets.
At 0848 GMT Shares of Commerzbank and ABN Amro were up 1.6% and 1.1% at EUR11.53 and EUR13.54, respectively, having risen more than 2% earlier in the session. This made them the biggest risers among European banking stocks. Deutsche Bank fell 0.6% to EUR11.98. The Stoxx Europe 600 Banks index fell 0.6%.
Deutsche Bank is considering the possibility of buying European banks including Commerzbank and ABN Amro, Bloomberg reported on Friday, citing unnamed sources. Deutsche Bank hasn’t started contacts with its potential targets, according to Bloomberg.
Deutsche Bank declined to comment, while Commerzbank and ABN Amro didn’t immediately respond when contacted by Dow Jones for comment.
“The chances of a sizeable transaction are relatively low in the near term given the many hurdles,” Anke Reingen, analyst at RBC Capital Markets, wrote in a note. Deutsche Bank’s move appears to have the objective to boost its valuation, the analyst said.
“We share the view that [Deutsche Bank’s] shares are undervalued but our outperform recommendation is based on the fact that [Deutsche Bank] delivers on its cost plan, returns capital to shareholders and becomes a more ‘predictable and balanced story’, which in our view should help the shares to re-rate once the economic outlook improves,” RBC said.
Write to Helena Smolak at helena.smolak@wsj.com
