UniCredit is closing the distance with Commerzbank
In a recent development, Italian bank UniCredit has increased its stake in German lender Commerzbank, now controlling nearly 29 percent of the company. This move has sparked speculation about a potential takeover, but the German federal government, which holds about 12% of Commerzbank and is the second-largest shareholder, has clearly opposed such a move and supports Commerzbank's independence.
The German government has consistently communicated its position to UniCredit, but has not disclosed any talks or plans for talks with UniCredit about a possible takeover. The stake increase was made possible by derivative positions entered into, and it was completed by the end of the year.
UniCredit's CEO, Andrea Orcel, has expressed interest in acquiring Commerzbank, but it is not known if there have been any talks with the German government or Commerzbank. UniCredit, however, has stated that it is not in a hurry to acquire Commerzbank, suggesting that more time could pass before an acquisition takes place.
The price movement generated by this news has resulted in chart-based selling pressure for Commerzbank. The 50-day line for Commerzbank's share price was at 32.52 euros and has been broken. The current Commerzbank share price continues to move south, and the AKTIONÄR stop for Commerzbank is moving closer to 29.00 euros.
It is currently uncertain if UniCredit will make a mandatory public offer for Commerzbank, as the 30 percent threshold would trigger such an offer. Invested shareholders should keep the approaching 30.00 euro mark for Commerzbank in mind. A new entry into Commerzbank is not recommended at this time.
This stake increase comes after UniCredit announced its intention to do so following the publication of Q2 results in July. Mr. Bernd Foertsch, the board and majority shareholder of the publisher Boerse-Medien AG, has positions in Commerzbank that could benefit from potential price development resulting from the publication.
Despite the potential for a takeover, both the German government and Commerzbank have previously rejected a merger. It remains to be seen how this latest development will unfold and what impact it will have on the future of Commerzbank.
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