Deutsche Bank Merger Plan Seen Threatened by Mounting Opposition - Bloomberg

Deutsche Bank Merger Plan Seen Threatened by Mounting Opposition - Bloomberg:

Less than two weeks ago, the leaders of Deutsche Bank AG and Commerzbank AG agreed to take an unbiased look at a proposed merger. Almost every day since then, their efforts have been undermined by internal and external forces.

Egged on by the German government, Deutsche Bank Chief Executive Officer Christian Sewing and his Commerzbank counterpart, Martin Zielke, are war-gaming the kind of cost savings and market share that would make a $20 billion-plus deal work. While neither is necessarily a fan, they agreed to give it a fair hearing, people briefed on the matter said.

The banks are still looking at one another, but the chances of a deal have dwindled, according to several people close to the talks, who asked not to be identified discussing confidential matters. What nobody foresaw was the parade of stakeholders who decided a merger would be a recipe for disaster. Commerzbank employees lambasted it; labor unions want to block it; some of Deutsche Bank’s biggest shareholders, including Qatar’s government, are wary of the plan.