The headquarters of Commerzbank AG, in the financial district of Frankfurt, Germany, on Thursday, September 12, 2024.
Emmanuel Cremachi | Getty Images News | Getty Images
Italy unicredit It said on Wednesday that it had increased its potential stake in… Commerzbank To 28% using more derivatives, as markets watch whether it will make this jump by buying the German bank.
This represents an increase from the previous 21%.
Italy's second-largest bank said its ownership now consists of a direct stake of 9.5% and about 18.5% through derivative instruments.
UniCredit has applied to the European Central Bank for permission to acquire a stake of up to 29.9% in the German bank, with CEO Andrea Ursel simultaneously seeking to make a bid for Italian peer Banco BPM.
“This move reinforces UniCredit’s view that significant value exists within Commerzbank that needs to be crystallized,” UniCredit said in a press release on Wednesday. “It reflects faith in Germany, its businesses and communities, and the importance of a strong banking sector in driving Germany’s economic development.”
The bank stressed that its position remains “investment only” for now and does not affect its €10 billion ($10.49 billion) offer to Banco BPM. Analysts are of the opinion that Orcel can still improve its offer Introducing a cash component to pursue local integration. In a statement accompanying Banco BPM's offer in November, UniCredit Bank noted that such a merger would serve it to “strengthen its competitive position and expand its presence in Italy”, where it holds second place. Intesa San Paolo.
UniCredit Bank has yet to warm up to the German takeover target or Berlin management for a potential deal. Commerzbank said on Wednesday that it “took note of the announcement” but declined to comment beyond referring to its strategy, which is currently being updated and will be unveiled on February 13.
The German government has so far opposed Orcel's courtship of Commerzbank, but faces its own turmoil after the collapse of the ruling coalition and the government of Chancellor Olaf Scholz. Losing a vote of no confidence Earlier this week paved the way for elections to be held in February. The German administration maintains a 12% stake in Commerzbank, after selling a 4.5% stake in September in an attempt to exit its position in the bank that it saved during the 2008 financial crisis.
Analysts have previously noted that a merger with Commerzbank in Germany, where UniCredit operates through its HypoVereinsbank division, could create synergies in its capital markets, advisors, payments and trade finance activities.
UniCredit shares were up 1.1% at 9:44 a.m. London time, with Commerzbank up 3.1%.
— CNBC's Greg Kennedy contributed to this report.
