have begun exploratory merger talks on Sunday after the executive boards of Germany’s two largest listed lenders agreed to evaluate the benefits of a tie-up.
A person familiar with the process said talks would start immediately, while a detailed due diligence process would commence next week when the banks would set up a number of committees to explore specific questions.Another person briefed on the matter said that the exploratory talks “won’t be over in a week” but that he expected protracted negotiations over a deal that would create the euro zone’s second-largest lender after BNP Paribas, with €1.
Deutsche Bank had informed a large shareholder over the weekend about Sunday’s board meeting, a person close to one top-five investor said, adding that the shareholder was still not entirely convinced about the merits of a tie-up with Commerzbank but was willing to back a deal under the right circumstances. “This must be driven by compelling business arguments, not by political ones,” the person said.