Commerzbank has criticized the Italian Unicredit for increasing its stake in the German bank without prior agreement. "Unicredit announced yesterday in a press release that it has increased its stake in Commerzbank to approximately 20 percent from 10 percent," a Commerzbank spokeswoman said on Wednesday. "This step was once again not coordinated with Commerzbank."
The German company intends to continue its strategy of increasing growth and profits to convince shareholders. "Our recent financial results clearly demonstrate that our independent business model is working," the spokeswoman explained.
The major Italian bank had invested heavily in Commerzbank; the Federal Cartel Office had approved an increase in its stake to 29.9 percent in mid-April. Unicredit had acquired a large portion of the shares in the form of derivatives, i.e., stock options, some of which have now been converted into Commerzbank shares.
According to Unicredit, it now holds 20 percent of Commerzbank shares. It intends to "convert the remaining synthetic position of approximately nine percent into physical shares in due course, thereby achieving approximately 29 percent of Commerzbank's voting rights," the Italian bank stated.
If the stake reached 30 percent, Unicredit would be obligated to make a public takeover offer, which would require the approval of the shareholders. Commerzbank's management and employees, as well as the German government, which has held shares since the bank's state rescue during the 2008 crisis, have spoken out against a takeover.
A spokeswoman for the Federal Ministry of Finance said on Wednesday that the federal government had taken note of Unicredit's increased stake in Commerzbank. "It rejects Unicredit's yet again uncoordinated and unfriendly approach" and supported Commerzbank's strategy of independence. Therefore, the federal government will not sell its remaining stake for the time being.
"The adjustment in UniCredit's position has no impact on our strategic direction or our ambitions," Commerzbank said. Commerzbank has looked to trim costs to make it more resistant to a takeover, announcing plans to cut 3,900 jobs by 2028, most of them in Germany.
Germany's second-largest private lender has also looked to win over stockholders by putting forward a share buy back programme. The German government has, similar to Commerzbank itself, flatly opposed a takeover by UniCredit, with Chancellor Friedrich Merz describing the Italian group's moves as "hostile".
Berlin still holds a 12.1-percent stake in Commerzbank, the legacy of a 2008 bailout in the midst of the global financial crisis. The government had begun the process of exiting its position in Commerzbank but has paused sales of its shares since UniCredit's interest became clear.
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