The American activist investor group Cerberus isn’t letting up the pressure on Commerzbank. Two weeks ago, it shocked the German banking sector by sending a scathing letter to the troubled bank’s board of directors, accusing it mismanagement and demanding immediate change – including two seats on the supervisory board. Now it has sent a second letter that is no less friendly in tone. “It is worrying to see the consistency with which Commerzbank management is avoiding taking the necessary measures that are so urgently necessary for Commerzbank to create value and meet its commitments to all stakeholders,” wrote Cerberus. It vowed that it would not accept the bank’s inaction and would work to bring about lasting change in the company’s top leadership for the good of all its shareholders. The German press is intrigued what Cerebrus meant later in the letter where it warned that it would use its own money to bring about necessary changes. The suspicion is that it would try to instigate a shareholder revolt. Cerberus bought its 5 percent stake in Commerzbank in 2017.
