Banks are attempting a recovery, with UniCredit in the spotlight thanks to progress on Commerz

(Il Sole 24 Ore Radiocor) - Bank shares are attempting to rebound on the Milan Stock Exchange (FTSE MIB ) after two sessions in the red. On the day the Fed is expected to raise interest rates, investors are thus once again betting on banks, whose share prices have nevertheless remained firmly on the rise since the start of the year.

In the spotlight in particular is Unicredit , which on Monday began direct talks with the German government ahead of its merger with Commerzbank . Berlin has reiterated its priorities, focusing in particular on maintaining the bank’s stock market listing and its headquarters in Frankfurt, as well as funding for German medium-sized enterprises, both at home and abroad. According to press reports, the German government would also like to confirm the two seats on the supervisory board, an issue on which UniCredit is said to be somewhat lukewarm. The head of the Italian bank, Andrea Orcel, is also said to be calling for the departure of the current leadership, namely CEO Bettina Orlopp and Chairman Jens Weidmann. Following the meeting with Finance Minister Lars Klingbeil, Orcel nevertheless limited himself to describing the face-to-face meeting as ‘fruitful and constructive’, anticipating further meetings ‘soon’. “It is now up to both parties to reflect on this first meeting, so that a way forward can be found in the interests of all stakeholders and shareholders,” he added. On the eve of the meeting, however, Orlopp said she was ‘aligned’ with the government, describing the meeting between Orlopp and Klingbeil as ‘an important step’. UniCredit has also been thrust into the spotlight by suggestions contained in a Mediobanca report, which sees a merger between Piazza Gae Aulenti and the Spanish bank Santander as the way to create a “European JPMorgan”.

The uncertainty, in any case, now affects the entire domestic sector. On the Milan Stock Exchange, Intesa Sanpaolo is rising after its chairman, Gian Maria Gros-Pietro, confirmed yesterday his intention to proceed with the takeover bid for Banca Monte Paschi Siena , noting a positive market response. Current share prices are broadly in line with the exchange ratio offered by Intesa, whilst Siena’s OPA on Banco Bpm and Banca Generali are trading at a premium of 3.3 per cent and 14.1 per cent respectively.