Shares in Deutsche Bank and Commerzbank traded higher on Monday as German business warmed to the prospect of a tie-up between the country's two largest banks.
FRANKFURT: Two top shareholders in Deutsche Bank are skeptical about a merger with its rival Commerzbank, doubting that such a combination would guarantee higher returns, people familiar with the matter said.
Deutsche Bank's chief executive Christian Sewing has agreed to hold tentative talks with local rival Commerzbank after Berlin, worried about Deutsche's health, pushed for a merger.
Those in favor of a merger say a tie-up would create a bank with an equity market value of more than 24 billion euros (US$27.00 billion), based on Friday's closing share prices, and a 20 percent share of the German retail banking market.
But two of Deutsche's top shareholders are not convinced.
"We're still against such a merger and in principle don't consider it a good idea," the person said.
"We continue to be skeptical that a merger would make sense," this person said.
Shares in Deutsche Bank and Commerzbank traded higher on Monday as German business warmed to the prospect of a merger between the country's two largest banks.
Deutsche Bank shares were 3.3 percent higher, while Commerzbank shares were up 5.6 percent higher early afternoon in Frankfurt, outperforming Germany's blue-chip DAX index which was 0.24 percent higher at 1301 GMT.
"It is getting harder for companies to find a partner who can provide funding," BGA President Holger Bingmann said.
"The business model of banks has come under pressure, and we would be glad if in the long run, to have at least one global player as a partner for our international business."