UniCredit ups stake in Commerzbank again as takeover speculation builds

(Sharecast News) - Italian banking group UniCredit has upped its stake in German peer Commerzbank to 28% and is seeking a further investment that will take its holding to just below the threshold that requires a mandatory takeover offer. The company said on Wednesday that now holds 9.5% through a direct stake and 18.5% through derivative instruments, lifting its holding from the 21% level reported in September.

UniCredit said it has submitted the necessary regulatory filings to acquire a stake up to 29.9% - just short of the 30% trigger for a mandatory takeover offer - and the authorisation process has "now activated".

The company did not disclose any financial details relating to the purchase, but said the "average entry price for the entire position is below current trading levels and fulfills the full financial metrics that we have committed to our shareholders to abide by".

Takeover speculation ramped up in September when UniCredit began amassing its holding in Commerzbank after purchasing a 4.5% stake in Commerzbank from the German government.

The investment comes just three weeks after UniCredit's attempted €10bn takeover of smaller Italian rival Banco BPM was rejected.

"This move reinforces UniCredit's view that substantial value exists within Commerzbank that needs to be crystalized. It reflects the belief in Germany, its businesses and its communities, and the importance of a strong banking sector in powering Germany's economic development," UniCredit said.

Commerzbank's shares were up 3.3% at €15.89 by 1217 in Frankfurt, while UniCredit gained 2.2% to €39.02.