UniCredit launches bid for Commerzbank shares, seeking to revive takeover talks 

UniCredit has met strong German opposition to a full takeover of Commerzbank following its initial investments Read more at straitstimes.com.

MILAN/FRANKFURT - Italy’s UniCredit said on March 16 it was launching an unsolicited offer to increase its stake in Commerzbank to more than 30 per cent and push its rival to engage in merger talks.

While UniCredit said it did not expect to achieve control of the German lender, in which it already holds a 26 per cent equity stake and another 4 per cent through total return swap contracts, the move ramps up pressure on Commerzbank’s management after a pursuit that started more than a year ago.

“UniCredit signals openness for dialogue and willingness to build bridges with Commerzbank and key stakeholders,” the Italian bank said in a statement.

UniCredit has met strong German opposition to a full takeover of Commerzbank following its initial investments, and chief executive Andrea Orcel repeatedly said he would launch such a move only if all stakeholders were supportive.

“It is expected that UniCredit will achieve a stake in Commerzbank in excess of 30 per cent without reaching control,” UniCredit said.

“The offer is designed to overcome the 30 per cent cliff-edge that exists under German takeover law and foster constructive engagement with Commerzbank and its stakeholders in the coming weeks,” it added.