Activist Investor Urges Comerica Sale Amid Leadership Dispute

HoldCo Asset Management, owning 1.8% of Comerica Inc., is pressing the bank to initiate a formal sale process and replace CEO Curtis Farmer, criticizing his management and communication style as inadequate. This activist push comes amid calls for Comerica to capitalize on favorable U.S. financial conditions and heightened deal activity, with HoldCo urging the engagement of an investment banker and a strategic sale to larger regional banks. Despite Comerica's board defending its long-term strategy and recent capital returns, investors responded positively to the activist campaign, driving shares up over 2% and reflecting heightened expectations for consolidation in the regional banking sector. Comerica's financial metrics, including a modest return on equity and assets compared to peers, and a price-to-earnings ratio below the industry average, underpin activist arguments that scale and regulatory burdens make a standalone future challenging. Market analysts remain mixed on Comerica's valuation, with average price targets slightly below current trading levels and general recommendations leaning toward a 'Hold' stance. The outcome of this activist engagement at Comerica may influence governance and consolidation trends among regional banks facing competitive and regulatory pressures.