Cerberus, one of the largest investors in Germany’s Commerzbank (CBKG.DE), said it had grave concerns about Hans-Joerg Vetter, a candidate to take over the chair of the lender’s supervisory board, and had its own names to pitch for the job.
In a letter to the bank’s supervisory board dated Aug. 2, Cerberus said the new chair must help initiate and support a “necessary, far-reaching restructuring” at Germany’s No. 2 bank.
“We have serious doubts that Hans-Joerg Vetter is the right person for this job or has the right experience for it,” Cerberus said in the letter, a copy of which was seen by Reuters. A spokeswoman for Commerzbank declined to comment.
Commerzbank, whose board was due to meet on Monday to discuss the role, was thrust into turmoil last month when Chief Executive Martin Zielke and supervisory board Chairman Stefan Schmittmann said they would step down to give the bank a fresh start.
The resignations followed a public campaign for change by Cerberus, the U.S. private equity firm which holds a 5% stake in the bank.
Shares in Commerzbank have fallen about 60% since Cerberus bought its 5% stake in 2017.
The 150-year-old lender has in recent months swung to a loss, halted its 2019 dividend plans, backtracked on the sale of its Polish lender mBank (MBK.WA) and suffered credit rating downgrades.
A decision on Monday by the board to back Vetter, a former chief executive of Landesbank Baden-Wuerttemberg, would go some way toward filling the leadership vacuum. Commerzbank has not named any possible candidates but two sources familiar with the matter previously told Reuters that Vetter was being considered.
“Cerberus has identified at least two candidates who have the required qualifications to fill the role of chairman and secure the confidence of all key stakeholders,” Cerberus said, without naming them. “We would be happy to introduce them,” it said.
Vetter’s supporters say he has restructuring experience and retail banking experience during his time at the Landesbank and previously when he was CEO of Bankgesellschaft Berlin.
The new chair is expected to lead the search for a new CEO.
