(Reuters) -Activist investor HoldCo Asset Management is threatening to nominate board directors at Comerica, the Wall Street Journal reported on Tuesday, in the latest move to force the regional lender to consider a sale.
The move comes just over a month after the South Florida-based asset manager pushed Comerica to pursue a sale process, saying the bank's stock has underperformed over the past two decades.
If the bank doesn't pursue a sale, HoldCo plans to nominate around five directors to Comerica's board when the window opens, likely in December, the WSJ report said, citing people familiar with the matter.
"Comerica is focused on driving value for our shareholders and continuing to execute our strategic plan. As always, we welcome feedback from all of our shareholders and we will continually evaluate opportunities that support growth and value creation," the bank said in a statement.
HoldCo did not immediately respond to a Reuters request for comment.
Comerica shares closed down 0.7% at $70.07 on Tuesday. Since Curtis Farmer was named the bank's CEO in 2019, Comerica's stock price has underperformed the broader industry.
In recent months, Wall Street analysts, including Wells Fargo's Mike Mayo and Baird's David George, have also raised questions around Comerica's stock underperformance.
HoldCo, which manages roughly $2.6 billion in assets, in late July disclosed a 1.8% stake in Comerica.
The activist investor has a history of pushing for changes at various banks, having pursued a campaign in 2021 against SVB Financial's acquisition of Boston Private.
The move also comes as a more sanguine regulatory environment under the Trump administration has paved the way for a revival in large bank M&A activity.
In July, Pinnacle Financial Partners and Synovus Financial agreed to combine in an $8.6 billion all-stock transaction, the biggest U.S. bank deal so far this year.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Alan Barona)