Activist hedge fund HoldCo Asset Management plans to nominate directors to the Comerica (CMA) board to encourage the Texas-based regional bank to consider a potential sale, the Wall Street Journal reported Tuesday, citing the people familiar with the matter.

HoldCo, which revealed a 1.8% stake valued at roughly $160 million in July, contends that Comerica has poorly managed its cost structure and interest rate risks and would perform better as part of a larger banking institution, the report said.

According to the report, if a sale does not proceed, HoldCo is likely to put forward roughly five nominees for Comerica's 11-member board when the nomination period begins in December.

The move highlights increasing investor frustration over the lack of consolidation in regional banks, which are grappling with rising regulatory expenses and the need to compete with larger competitors, the Journal added.

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