German Prosecutors See No Market Manipulation in Commerzbank Takeover Battle

Frankfurt prosecutors will not open an investigation into allegations of market manipulation against Italian bank UniCredit related to its takeover bid for Commerzbank. The Commerzbank works council had filed a complaint, suspecting UniCredit of providing misleading information about the progress of its bid. However, the public prosecutor's office in Frankfurt stated that it found no sufficient factual grounds to initiate criminal proceedings.

Sascha Uebel, chairman of the Commerzbank works council, confirmed the decision, calling it a setback for their efforts. The prosecutor's office indicated that further details could not be disclosed due to the ongoing takeover process and potential market influence. The works council had raised concerns that UniCredit's bid, which initially traded below Commerzbank's share price, was being artificially supported, suggesting potential manipulation.

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sufficient factual grounds to initiate criminal proceedings could not be established.

UniCredit recently announced it had secured over 47% of Commerzbank shares through its offer, including financial instruments, narrowly missing a majority. Commerzbank's leadership, however, has repeatedly questioned UniCredit's figures. The bank stated that, based on its information, less than two percent of shares were tendered by professional and private investors, with the majority coming from banks and parties affiliated with UniCredit. Commerzbank also raised issues regarding the transparency of borrowed shares and hedging arrangements.

UniCredit has consistently denied these allegations. The German financial regulator, BaFin, has also been involved, with Commerzbank expressing doubts about the tender figures and the transparency of the process. The ongoing takeover battle highlights significant disagreements between the two banks regarding the validity and transparency of UniCredit's acquisition efforts.

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The tendered shares predominantly come from banks and parties affiliated with UniCredit.