UniCredit to strengthen stake in Commerzbank to 30%

To enhance its stake in Commerzbank above 30%, UniCredit has launched an offer that could potentially lead to a full takeover bid. Currently holding a 28% stake in Commerzbank, UniCredit aims to increase this through an exchange ratio offer of 0.485 shares of UniCredit per share of Commerzbank. This proposal implies a price of 30.80 euros per Commerzbank share, representing a 4% premium.

UniCredit CEO, Andrea Orcel, has expressed that the bank does not anticipate its stake exceeding 30%. Going beyond this threshold would consume a significant portion of the bank’s capital. Orcel emphasized that a full takeover scenario is unlikely.

Despite facing a decline in share prices, UniCredit and Commerzbank continue to navigate through the complexities of German takeover regulations. The offer is strategically designed to address the mandatory offer requirement triggered by a 30% stake without intending to gain full control.

UniCredit’s bid is scheduled to be unveiled at the beginning of May, coinciding with an Extraordinary General Meeting on May 4 to secure authorization for the associated capital increase. Noteworthy shareholders in Commerzbank include the German government, BlackRock, and Norges Bank Investment Management.

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