Live Markets: Short sellers up bets on European bank M&A targets; Commerzbank, MPS in focus
10/01/2025 12:22
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SHORT SELLERS UP BETS ON EUROPEAN BANK M&A TARGETS; COMMERZBANK, MPS IN FOCUS
European bank M&A seems to be good news for the securities lending industry, as short
sellers like to bet against target companies.
Perhaps that's not the most significant aspect of the endless discussions of European
banking consolidation - which never seem to reach a conclusion - but it is one takeaway from
data from S&P Global Market Intelligence published Friday.
They found that Germany's Commerzbank had 5.78% of its shares on loan to short sellers by
the end of last year, up more than 460 basis points compared to the end of the third quarter,
making it the third most lent banking stock in Europe.
The German lender's shares jumped in September, when news broke that Italy's UniCredit had
amassed a sizable stake in Commerzbank and said it wished to acquire its rival.
So far the deal, which is broadly unpopular in Germany, remains in limbo, but Comemrzbank's
shares, while volatile, remain elevated and around 25% above their August lows.
Short sellers also borrowed 5.2% of Monte dei Paschi's shares as of Dec. 31, an increase of
more than 500 basis points since the end of the third quarter.
UniCredit is also trying to acquire MPS.
The most shorted bank however remains Sweden's Svenska Handelsbanken AB, SHBa.ST or to be
specific its class B shares. SHBbSEK.xbo
(Alun John)
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