UniCredit expands Commerzbank stake amid takeover battle

Italian banking giant UniCredit has further boosted its stake in German competitor Commerzbank, announcing Tuesday that its ongoing takeover bid has secured offers for 10.9% of Commerzbank's shares. UniCredit CEO Andrea Orcel has already secured 37.7% of the German bank's shares, with this figure rising to 40.9% when including forward transactions.

The Italian bank also holds additional forward contracts that could bring in another 13.19% of Commerzbank shares if paid in stock, potentially giving UniCredit a majority stake. However, Commerzbank's management is fiercely resisting the takeover attempt.

UniCredit publicly criticized Commerzbank's defense tactics, stating that while the German bank's leadership has the right to advise against the offer, they are not justified in undermining the bidding process with baseless accusations. UniCredit dismissed claims that it had mixed disclosure categories to inflate support for its offer as unfounded.

The rapid accumulation of shares by UniCredit, a week before the offer's deadline, is surprising. The exchange offer remains mathematically below Commerzbank's current share price, and analysts have set even higher price targets. Typically, institutional investors tender their shares only in the final days of a takeover period.

Experts suggest that if UniCredit fails to reach the 50% threshold, European Central Bank supervisors might deem that the Italians effectively control Commerzbank. This could lead to significant capital surcharges without granting Orcel the direct control over the German subsidiary that he would have with a majority stake.