The headquarters of Commerzbank AG, in the financial district of Frankfurt, Germany, on Thursday, September 12, 2024.
Emanuele Cremaschi Getty Images News | Getty Images
Italy UniCredit he said on Wednesday that they have raised their possible interest Commerzbank to 28% using more derivatives, while markets are watching to see if he can jump with the purchase of a German lender.
This marks an increase from the previous 21% maintenance.
The second largest bank in Italy said that ownership now includes a direct share of 9.5% and about 18.5% through derivative instruments.
UniCredit has applied to the European Central Bank for approval to acquire a stake of up to 29.9% in the German bank, as CEO Andrea Orcel simultaneously pursues a bid for Italian peer Banco BPM .
“This move reinforces UniCredit's view that there is great value in Commerzbank that needs to be crystallized,” UniCredit said in a press release on Wednesday. “It reflects the belief in Germany, the businesses and the communities, and the importance of a strong banking sector in powering Germany's economic development.”
The lender confirmed that its position remains “investment only” at this time and is not affected by its 10-billion-euro ($10.49 billion) bid for Banco BPM. Analysts say Orcel could still sweeten its bid and introduce a cash component to continue domestic consolidation. In a statement accompanying its Banco BPM offer in November, UniCredit noted that such a merger would help it “consolidate its competitive position and expand its presence in Italy,” where it is second . Intesa Sanpaolo.
UniCredit has yet to warm to the German takeover target or the Berlin administration to a possible deal. Commerzbank said on Wednesday it has “taken note of the announcement” but declined to comment beyond highlighting its strategy, which is currently being updated and will be published on February 13 .
The German government has so far resisted Orcel's courting of Commerzbank, but is facing its own turmoil following the collapse of the ruling coalition and the trial of Chancellor Olaf Scholz. lose a vote of no confidence earlier this week cleared the way for elections in February. The German administration retains a 12% stake in Commerzbank, after offloading a 4.5% stake in September in a bid to exit its position as a bailout lender during the 2008 financial crisis. .
A merger with Germany's Commerzbank, where UniCredit operates through its HypoVereinsbank division, could create synergies in capital markets, advisory, payments and trade finance operations, analysts have previously said. .
UniCredit shares were up 1.1% at 9:44am London time, with Commerzbank stock rising 3.1%.
– CNBC's Greg Kennedy contributed to this report.
