UniCredit Launches Offer to Raise Commerzbank Stake Above 30%

Italian lender UniCredit announced on Monday, March 16, that it is launching a public offer to increase its stake in Germany's Commerzbank above the 30 percent threshold required under German takeover regulations, though the bank emphasized it does not intend to gain control of the target.

UniCredit, which currently holds 26 percent of Commerzbank in direct equity and an additional 4 percent through total return swap contracts, stated the move aims to surpass the so-called 30 percent cliff-edge in German law. This threshold triggers mandatory takeover rules, but UniCredit expects the offer to result in a stake exceeding 30 percent without conferring control. The Italian bank described the initiative as a way to facilitate constructive dialogue with Commerzbank and its stakeholders in the weeks ahead.

Under German regulations, the offer price will be set by the markets authority, BaFin. UniCredit anticipates it will equate to 0.485 of its own shares for each Commerzbank share, implying a value of 30.8 euros per Commerzbank share. That represents a 4 percent premium over Commerzbank's closing price of 29.95 euros on March 13. At Friday's market close, Commerzbank shares traded at...