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ABN may eye Commerzbank
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February 10, 2000: 12:51 p.m. ET
German bank stocks climb as 'independent' seen stalked by Dutch giant
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LONDON (CNNfn) - Germany's Commerzbank was embroiled in takeover speculation Thursday -- prompting a 10 percent leap in its stock price -- as Dutch financial powerhouse ABN Amro was reported to be preparing a bid valued at up to 25 billion euros ($24.6 billion).
Commerzbank, Germany's fourth-largest bank, has been surrounded by recurring speculation about its ability to remain independent amid speculation about tie-ups among Germany's other major banks. Commerzbank and ABN Amro declined to comment on the latest rumors, which came from traders rather than media reports.
Commerzbank (FCCM) shares closed 9.8 percent higher at 35.35 euro having peaked at 36.10 earlier in the session, just 1 euro below their 52-week high.
Market analysts remained cautious about the sharp climb in Commerzbank's shares. "I've spoken to ABN Amro and it's unlikely that they're making a bid. The rumors are very remote from what I've heard from the companies," Adrian Pilz, banking analyst at Fox-Pitt-Kelton in London.
Market speculation was that ABN was looking to pitch a bid of around 50 euros a share, valuing Commerzbank at 25 billion euros.
Commerzbank has maintained that it would seek to remain independent, and has pursued a policy of building pan-European alliances -- including a stake in France's Crédit Lyonnais (PCL) and ties with BCI in Italy and Spain's BSCH.
The success of Vodafone Airtouch's successful hostile bid for Mannesmann is expected to change Germany's corporate culture and end the reluctance of overseas companies to become predators in Germany.
The two banks are seen as a good strategic fit, with complimentary products in investment banking, while Commerzbank has Germany's largest online brokerage, an area where the Dutch company is seen to lack clout.
However, Pilz added that Commerzbank had been trading at a discount to the German banking sector ahead of Thursday's sharp rise. "Investors keen to maintain a German position are likely to switch out of Deutsche Bank due to fears of a high cost base ahead of Deutsche's preliminary results next week," he said.
However, the focus helped lift other financial stocks, with HypoVereinsbank (FHVM) and Dresdner Bank (FDRB) both gaining over 2 percent.
ABN Amro shares closed down almost 1 percent at 20.78 euros in Amsterdam. 
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