Commerzbank Slams UniCredit’s Approach as Hostile
The German lender Commerzbank has taken a strong stance against UniCredit’s bid to acquire a significant stake in the company, labeling the Italian bank’s approach as “hostile”. This comes after UniCredit CEO Andrea Orcel claimed that there had been discussions between the two banks in the past two years, which Commerzbank vehemently denies.
A History of Talks, But No Proposal
Orcel stated that UniCredit had been in talks with Commerzbank’s leadership, as well as the German government, numerous times over the past two and a half years. However, Commerzbank maintains that no concrete proposal has been put forward, and any discussions can only be based on a specific offer.
The Stake-Building Saga
UniCredit has been gradually building its stake in Commerzbank, primarily through the use of derivatives, and now holds a 28% share. The European Central Bank’s approval is still pending, but Commerzbank is adamant that UniCredit’s unilateral actions can only be seen as hostile.
Government Backlash and Future Plans
The German government was caught off guard by UniCredit’s initial 9% stake announcement in September, and Orcel expressed surprise at the backlash. Despite this, he hopes to engage with the future government, post-February 23 election, to discuss a potential tie-up between Commerzbank and HVB, the Bavarian bank UniCredit acquired in 2005.
Protecting Shareholder Interests
Commerzbank’s management is committed to protecting the interests of its shareholders and the company as a whole. In a statement, the bank emphasized that UniCredit’s approach has antagonized many stakeholders, and it is essential to prioritize the well-being of all parties involved.
Clarity by Year-End?
Orcel expressed hope that UniCredit’s strategy in Germany would become clearer by the end of the year, following engagement with the future government. However, any takeover offer would need to comply with German regulations, which require a cash bid with a floor price if it occurs within six months of crossing the 5% ownership threshold.
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