"UniCredit first took a stake of 9% in Commerzbank in September 2024 and has since built up its holding to just under 30%. It said on Monday it was pushing to increase that holding further and push the rival lender into formal merger talks. Under German law, a shareholder that has a more than 30% stake is required to make a takeover bid."
"The Milan-headquartered bank said on Monday it was planning a share swap that would imply a 30.8 price per Commerzbank share, or about 34.7bn in total. UniCredit signals openness for dialogue and willingness to build bridges with Commerzbank and key stakeholders."
"The federal government supports Commerzbank's strategy of independence. The federal government has already made this very clear to UniCredit. The 2008 bailout involved the German government injecting 18.2bn of cash."
Italy's UniCredit has escalated its acquisition of Germany's Commerzbank, increasing its stake to just under 30% and proposing a €30.8 per-share offer valuing the deal at €34.7bn. UniCredit first acquired 9% in September 2024 and continues building its position toward the 30% threshold that triggers mandatory takeover bid requirements under German law. The move directly opposes the German government, which retains over 12% ownership following its €18.2bn bailout during the 2008 financial crisis. Commerzbank, founded in 1870 with 40,000 employees across 40 countries, has German state backing for maintaining independence. UniCredit frames the offer as pragmatic dialogue, though the German finance ministry and former chancellor have explicitly opposed the Italian bank's pursuit.
Read at www.theguardian.com
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