Italian UniCredit SpA increased its holding in German Commerzbank AG to about 28%.
It is worth noting that currently, UniCredit chief executive officer Andrea Orcel continues to pursue Commerzbank. The relevant efforts, as noted by the media, have a significant chance of success, as Germany prepares for federal elections.
UniCredit has entered into derivatives relating to Commerzbank shares. The relevant information is contained in a statement that was published on Wednesday, December 18, by a financial institution based in Milan. Currently, the Italian bank’s stake in the German lender is 9.5% direct ownership and about 18.5% through financial instruments.
UniCredit also announced that the process of obtaining regulatory permission for a large stake in the ownership structure of Commerzbank has been activated. Successful completion of the relevant process will allow the Milan-based financial institution to convert its derivative holdings into physical shares. German takeover rules stipulate that shareholders make an acquisition bid if their stake crosses the 30% threshold.
The increase in holding in Commerzbank indicates that Andrea Orcel has not abandoned his intention to buy the mentioned lender, although the German government is against the relevant deal. At the same time, the election of the new government will take place in February. It is possible that in March Berlin, as a political center, will have a different opinion about the mentioned deal.
On Wednesday the value of Commerzbank’s shares rose by 4,3% in early trading in Frankfurt.
As we have reported earlier, UniCredit Offers to Buy Banco BPM.
