FRANKFURT (Reuters) – Deutsche Bank and Commerzbank favor a straightforward merger over more complex ways to structure a deal, three people close to the matter said.
In their base case scenario, a transaction would be organized as a share offer from Deutsche Bank for Commerzbank, they said. That structure is preferred to the creation of a new holding company, which is viewed as too difficult to execute.
Holding - Structure - People - Company - Deutsche
“The holding structure is dead,” one of the people said, referring to setting up a holding company that would buy Deutsche and Commerzbank in return for shares of the new bank.
Sources said last year that Deutsche Bank was examining creating a holding company structure amid speculation at the time that it could merge with Commerzbank.
Month - Banks - Talks - Merger - Decision
Last month the two banks confirmed they were in talks about a merger. A preliminary decision on whether they want to go forward is expected within days.
The people cautioned that no decision has yet been taken on a potential deal structure and there is still no certainty that a deal will be struck at all.
Deutsche - Bank - Commerzbank
Deutsche Bank and Commerzbank declined to comment.
Regulators in the United States, Britain and Switzerland tend to favor the bank holding company structure, in part because it can...
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