Cerberus demands leadership change at German banks
The private equity firm turns to activist on frustrations with Deutsche Bank and Commerzbank
Cerberus Capital Management has given up on the art of persuasion. After losing $900m on stakes in Deutsche Bank and its smaller rival Commerzbank — about half its original 2017 investments — the New York private equity firm has come out fighting. That Cerberus is turning from backer to shareholder activist says more about its miscalculations on German banking than its aspirations.
Cerberus, run by the low-profile billionaire Stephen Feinberg, has vowed to seek “alternative paths” after Commerzbank rejected its request last week to give it two seats on the company’s supervisory board. In a punchy response, Cerberus said it remained committed to “achieving substantial change to the leadership”, and that management had failed to meet targets that weren’t ambitious enough to begin with...
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