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Cerberus vows to work with Commerzbank chair despite concerns - source

Credit: REUTERS/Ralph Orlowski

Major Commerzbank investor Cerberus, seeking to move on from a defeat over the naming of a new chairman at the German lender, "acknowledges the reality" and will work with him, a person close to Cerberus said on Tuesday.

Conciliatory tone comes day after new chair named

Cerberus had expressed serious doubts about chair

Updates with details

FRANKFURT, Aug 4 (Reuters) - Major Commerzbank CBKG.DE investor Cerberus, seeking to move on from a defeat over the naming of a new chairman at the German lender, "acknowledges the reality" and will work with him, a person close to Cerberus said on Tuesday.

The conciliatory tone comes a day after Commerzbank ignored the concerns of Cerberus by electing Hans-Joerg Vetter, the retired chief of a German regional bank, as its new chairman.

Cerberus is "looking forward to working with Vetter and the rest of the board to get a good result for Commerzbank", said the person.

Cerberus had said before Vetter's election that it had "serious doubts" about his qualifications.

Tuesday's statement signals that the private equity investor will not pursue obstructionist tactics at its disposal, such as through the legal system, as a way forward.

Cerberus, with a 5% stake, is the lender's second-largest shareholder after the government.

In June, it launched a campaign to shake up the bank, which it has described as "disastrous".

At the time, it demanded seats on the supervisory board, a request it is expected to pursue further.

(Reporting by Tom Sims and Hans Seidenstuecker Editing by Sabine Wollrab and Michelle Martin)

((Tom.Sims@thomsonreuters.com; +49 69 7565 1242;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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