UniCredit hikes Commerzbank stake to 28%
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The news: Italy’s UniCredit has increased its stake in Commerzbank to 28%, declaring its move to capture the “substantial value” in the German lender would not impact its bid for smaller domestic rival Banco BPM.
UniCredit’s position in the German-government backed Commerzbank comprises a 9.5% direct ownership stake and 18.5% via derivatives, as it seeks regulatory approval to raise its holding to 29.9%, it said Wednesday, local time.
The context: UniCredit CEO Andrea Orcel’s strategy to extract value from the German lender, whether through a sale or integration into a potential merger, has rattled many in Berlin since it first emerged as Commerzbank’s biggest private investor in September.
Finance Minister Jörg Kukies last month said he expects Orcel to abandon the approach given the government’s “critical stance” on it.
The acquisition needs regulatory approval from the ECB and BaFin, Germany's financial authority, and that process is ongoing, the lender said.
The move comes as UniCredit’s €10.1 billion ($16.76 billion) bid for Italian rival Banco BPM remains under scrutiny. On Tuesday, BPM urged Italy’s regulator to investigate the approach, claiming it did not respect certain rules, The Financial Times reported.
BPM has rebuffed the offer, saying it undervalues the bank and blocks its acquisition of local asset manager Anima.
At the time of the offer announcement last month, Orcel said efforts to expand in Germany were on hold until a new government was in place, noting the potential to replicate the performance improvements achieved at its German subsidiary HypoVereinsbank (HVB) with Commerzbank.
What they said: “UniCredit's overall position now totals circa 28%, of which 9.5% through a direct stake and circa 18.5% through derivative instruments,” the Italian bank said in a statement.
“UniCredit has submitted the necessary regulatory filings to acquire a stake in Commerzbank in excess of 10% up to 29.9%. The authorization process is now activated, and interactions with authorities ongoing.”
“This move reinforces UniCredit's view that substantial value exists within Commerzbank that needs to be crystalized,” it said.
“The position remains at this time solely an investment and does not have any impact on the public exchange offer with Banco BPM.”
The sources: UniCredit statement , The Financial Times
