Germany has reportedly opposed UniCredit‘s latest attempt to increase its stake in Commerzbank, describing the move as “uncoordinated and unfriendly”.
This response comes as the Italian banking giant UniCredit increased its potential stake in Germany’s Commerzbank to 28% from the current nearly 21% interest, reported Reuters.
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UniCredit said it has signed new financial instruments pertaining to additional shares in Commerzbank.
The Italian bank’s 28% interest includes a 9.5% direct stake and 18.5% through derivative instruments.
UniCredit is now seeking regulatory approval to further increase its stake in Commerzbank to up to 29.9%.
In a press statement, UniCredit said: “This move reinforces UniCredit’s view that substantial value exists within Commerzbank that needs to be crystalised. It reflects the belief in Germany, its businesses and its communities, and the importance of a strong banking sector in powering Germany’s economic development.
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By GlobalData“The position remains at this time solely an investment and does not have any impact on the public exchange offer with Banco BPM.”
However, UniCredit’s move is being opposed by the German government, which is urging the Italian bank to divest its stake, reported Bloomberg News.
UniCredit requires approval from the European Central Bank to convert its derivative holdings into direct shares and own up to 29.9% of Commerzbank.
Germany deputy government spokesman Wolfgang Buechner was quoted by Bloomberg as saying: “UniCredit itself emphasises that the participation in Commerzbank has so far been a pure investment, which could also be dissolved at any time.
“The German government expects UniCredit to make use of this option.”
Last month, Reuters reported that Commerzbank is planning to acquire a mid-sized German bank as a strategic move to avert a potential buyout by UniCredit.
Last month, UniCredit made an unsolicited €10.1bn ($10.7bn) all-share takeover offer for compatriot Banco BPM to consolidate its competitive position within Italy.
The offer valued Banco BPM share at €6.657 apiece, representing a 0.5% premium over the stock price on 22 November 2024.
However, UniCredit’s bid was rejected by Banco BPM saying the terms “do not reflect in any way the underlying profitability and the additional potential for value creation for Banco BPM shareholders”.
