Activist hedge fund HoldCo Asset Management is preparing to escalate its campaign at Comerica, threatening to nominate as many as five directors to the regional lender’s board unless the bank agrees to pursue a sale, according to a Wall Street Journal report.
The move follows HoldCo’s public call in July for Comerica to explore strategic alternatives, citing the bank’s long-term share price underperformance. HoldCo, which manages around $2.6bn in assets, disclosed a 1.8% stake in the Dallas-based lender at the time.
Comerica’s stock closed at $70.07 on Tuesday, down 0.7%, and has lagged peers since CEO Curtis Farmer took the helm in 2019. Analysts at Wells Fargo and Baird have also recently questioned the bank’s valuation and strategic direction.
If Comerica resists a sale, HoldCo plans to nominate directors when the shareholder window opens in December, the WSJ said. The hedge fund has a track record of banking activism, including its 2021 campaign against SVB Financial’s acquisition of Boston Private.
Comerica said in a statement it remained focused on “driving value for our shareholders” while welcoming investor feedback.
The activist campaign comes amid renewed optimism for US bank M&A under a friendlier regulatory backdrop. In July, Pinnacle Financial Partners and Synovus Financial announced an $8.6bn all-stock merger, the largest US bank deal so far this year.
