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UniCredit says increased Commerzbank stake to 34% in hostile takeover / Photo: GIUSEPPE CACACE, John MACDOUGALL - AFP/File
UniCredit says increased Commerzbank stake to 34% in hostile takeover
Italy's UniCredit said Tuesday it had increased its stake in Commerzbank to 34.4 percent as its hostile takeover of the German bank heats up.
"UniCredit views the strength of the early tender response as reflective of the inherent value that investors are recognizing in UniCredit’s takeover offer," the Italian bank said in a statement.
UniCredit held a 25 percent stake in Commerzbank before it launched its takeover bid on May 5 and the offer runs until June 16.
"Shares representing approximately 7.6 percent of Commerzbank's share capital have been tendered thus far.
"In combination with UniCredit’s direct shareholding and the physically settled instruments, this amounts to 34.4 percent and 37.6 percent respectively in the aggregate," the statement said.
"These figures represent the only relevant measures for establishing whether UniCredit’s takeover offer is successful," it added.
After spending over a year building up a stake in Commerzbank, Italy's second-biggest bank last month officially launched a 35-billion-euro ($41 billion) takeover attempt for its German rival.
The bid is widely seen as too low, but it marks the latest move in the Italian bank's relentless pursuit of Commerzbank which has sparked fury from the lender and top German politicians.
Commerzbank's chief executive Bettina Orlopp was applauded at a shareholder meeting last month as she slammed UniCredit's bid.
Addressing Commerzbank's annual general meeting, she said it was "an attempt to take over Commerzbank at a price that does not properly reflect the fundamental value and potential of our bank".
Chancellor Friedrich Merz has led criticism from German politicians of what he has termed "hostile and aggressive approaches", saying recently that such actions are "how trust is destroyed".
But UniCredit argues that it is trying to create a pan-European banking behemoth that will be better equipped to take on larger US rivals internationally.
T.Cusumano--INP
