Berliner Boersenzeitung - Commerzbank commits to strategy as UniCredit ups direct stake

UniCredit said late Tuesday it had increased its direct stake in Commerzbank to around 20 percent from 10 percent, following all the necessary regulatory approvals.

The Italian group said it intended to convert a further tranche equivalent to around nine percent of Commerzbank's stock and held through derivatives into fully owned shares.

The moves, which made UniCredit the single-largest shareholder in the German bank, were "once again not coordinated with Commerzbank", the bank said in a statement sent to AFP on Wednesday.

Commerzbank has strongly resisted a possible takeover by UniCredit since the Italian bank announced in September it had quietly built up a stake in the German group.

The move triggered talk that UniCredit chief Andrea Orcel wanted to push for an ambitious pan-European banking merger.

"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.

A large portion of the Commerzbank shares initially acquired by UniCredit in September were bought directly from the German government, a move which surprised officials.

A finance ministry spokeswoman said Wednesday that the government had "taken note" of UniCredit's latest steps.

The government "rejects UniCredit's renewed uncoordinated and unfriendly approach" and "supports Commerzbank's strategy of independence", the spokeswoman said.

As such, the government would not be parting ways with the remainder of its stake, she said.

(A.Lehmann--BBZ)