LONDON: The collapse of merger talks between Commerzbank and Deutsche Bank is good news, a top Commerzbank shareholder said on Thursday, adding he expects an alternative deal to be struck with another European rival.
"I think it's very good news," said Fabrice Theveneau, head of global equities at Lyxor Asset Management, which is the 13th biggest shareholder in Commerzbank.
"While there was a rationale for Deutsche Bank, we didn't see the rationale for Commerzbank because there would have been a small premium and significant execution risk, all for limited upside," Theveneau told Reuters.
He said he is holding onto his Commerzbank shares partly because he expects the bank to pursue an alternative deal with another European lender.
Italy's UniCredit and France's BNP Paribas are the most likely suitors, he said.
"We didn't think Deutsche Bank was the right partner for Commerzbank," he said.
Lyxor Asset Management owns 6.71 million shares, or 0.54 percent, in Commerzbank worth 50.8 million euro ($56.6 million) at current prices, according to Refinitiv Eikon data.
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