Italian banking giant UniCredit announced on Tuesday it has taken its share in Germany's Commerzbank to well over the 30% mark in its takeover bid.
The Milan-based bank said it had secured 7.58% of the capital from Commerzbank shareholders. Combined with the 26.77% stake it already held, UniCredit's shareholding would rise to 34.35%.
By launching a voluntary takeover offer last month, UniCredit avoided triggering a significantly more expensive mandatory bid for all outstanding Commerzbank shares. The bank is offering 0.485 UniCredit shares for each Commerzbank share.
At current prices, this is less than what a Commerzbank share is worth on the exchanges after a recent rise. UniCredit also holds financial instruments allowing it to access further Commerzbank shares.
In September 2024, UniCredit took a substantial stake in Commerzbank, after the German state disposed of shares purchased during the 2008 financial crisis to support the bank. UniCredit soon became the largest shareholder in Germany's second-largest bank.
On May 5, UniCredit chief executive Andrea Orcel increased pressure for a takeover with a voluntary purchase offer for all Commerzbank shares.
UniCredit, which operates in Germany through Hypovereinsbank (HVB), sees potential savings in a merger amounting to billions of dollars.
Commerzbank's executive and supervisory boards have both warned shareholders against accepting the takeover, not least because of the rise in Commerzbank's share price. Another risk factor is the fact that UniCredit is one of the largest foreign banks still operating in Russia.
The German lender has warned that a takeover could result in around 11,000 job cuts, according to chief executive Bettina Orlopp, far exceeding Commerzbank's own plan to eliminate 3,000 positions by 2030.
he German state, which continues to hold a stake of more than 12% is also against any hostile takeover.
In results for last year, Commerzbank posted the largest operating profit in its history and is seeking to keep its shareholders on board with the prospect of rising profits and dividends.
