As shares of Commerzbank AG and Deutsche Bank AG rise on the coattails of the
ABN Amro Bank NV-Barclays plc deal, the German central bank is sounding the
protectionist alarms by warning potential suitors — specifically foreigners —
not to go hostile. Instead of PE firms playing the villain this time (see
"Days
of the locust"), Bundesbank chairman Edgar Meister, who stepped down from
the Bundesbank's board Monday, focused his attention on hedge funds. Meister
warned that hostile bids prompted by activist shareholders could destablize
the economy. As much as his warning was against hostile bids, it also
exemplified the aversion most central banks have toward such cross-border
dealmaking, Reuters said. —Matthew Wurtzel
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story from Reuters
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related story about ABN Amro-Barclays deal
See
"Days of the locust" from The Deal newsweekly
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