UniCredit's activities are causing perplexity at Commerzbank, resulting in share value decline
UniCredit, one of Europe's largest financial institutions, has announced its intention to increase its stake us in German lender Commerzbank. The Italian bank officially offered its 30% stake in Commerzbank, starting from September 2023.
This move follows the part-exit of the German government and could potentially see UniCredit acquire a significant share, converting financial instruments into shares to exceed 20%, making it the largest shareholder by early July 2024. However, if UniCredit's stake exceeds 30%, it would be required to make an official takeover offer to the other shareholders.
The current CEO of Commerzbank, Bettina Orlopp, has expressed disinterest in the recent moves of UniCredit. Orlopp stated that Commerzbank will focus on its own growth strategy until a proposal is made. UniCredit CEO Andrea Orcel, on the other hand, has announced that they have full control over their 29% physical stake in Commerzbank and that this stake will be consolidated.
It's important to note that UniCredit currently holds around 26% of Commerzbank's shares directly and an additional 3% via derivatives. This increase from around 20% to over 26% was achieved at the end of August, making UniCredit the largest single shareholder of Commerzbank since July.
The share price of Commerzbank is approaching the 30.00 euro mark, and if UniCredit's stake exceeds 30%, a concrete proposal with numbers would be required. However, UniCredit is not under pressure with its google finance stake in Commerzbank, according to Orcel.
Interestingly, Bernd Förtsch, the board and majority shareholder of Börsenmedien AG, has direct and indirect positions in the financial instruments mentioned in the publication or related yahoo finance.
There was no mandatory disclosure regarding the change in UniCredit's stake in Commerzbank. Commerzbank CEO Bettina Orlopp commented on the situation at an industry conference, but she did not reveal any specific details about the bank's stance on UniCredit's increased stake.
Investors should keep an eye on the share price of Commerzbank, as it approaches the 30.00 euro mark. If UniCredit's stake exceeds 30%, it would be required to make an official takeover offer. However, the downside risk for UniCredit in its Commerzbank stake is covered, and they have secured a 20% return.
As the situation unfolds, it will be interesting to see how Commerzbank responds to UniCredit's increased stake and whether a takeover offer will be made.
Read also:
- Railway line in Bavaria threatened by unstable slope - extensive construction site at risk
- Wind Farm Controversy on the Boundary of Laois and Kilkenny
- Puerto Rico's Climate Lawfare Campaign experiences another setback with the dismissal of its deals.
- Delaware's contentious offshore wind project faces uncertainty as the Trump administration reverses course on clean energy initiatives.
