Activist investor Cerberus will continue to push for change at Commerzbank: CityAM
Activist investor Cerberus has said it will use “alternative avenues” to push for change at Commerzbank if the lender continues to resist calls for reform.
Cerberus did not describe the routes it could take in a letter sent to the chairman of Commerzbank’s supervisory board dated yesterday and seen by Reuters.
One possibility is that the investor calls an extraordinary general meeting and asks other shareholders to support his demand for a “substantial change” in the management of Germany’s second largest bank.
The letter was sent after the bank last week rejected Cerberus’ requests for two seats on its supervisory board.
Launching his campaign last week, the activist investor also called on the lender to cut costs and adopt a new strategy, complaining that he had ignored his advice after more than 70 meetings.
Commerzbank shares have fallen about 60% since Cerberus bought a five percent stake in the lender in 2017.
“We remain committed to making substantial changes to Commerzbank’s leadership and the bank’s operational and strategic paths for the benefit of all stakeholders at Commerzbank,” Cerberus said in the letter.
Commerzbank, which last year announced plans to cut thousands of jobs, is currently identifying further cost cuts and will announce its plans when it releases its second quarter results in August.
Cerberus said the supervisory board was responsible for the bank’s “dire situation” in the letter, Reuters reported.
“Unfortunately, it is a fact that Commerzbank has not yet adopted or executed any of our suggested actions,” the investor wrote.
A spokesperson for the bank declined to comment.