Anticipating UniCredit to Abandon Attempted Acquisition, According to Klingbeil - Klingbeil suggests Unicredit will likely abandon acquirement endeavor
In a significant move, Italian banking giant Unicredit has doubled its direct stake in Germany's second-largest private bank, Commerzbank. Unicredit announced on Tuesday evening that it had increased its shareholding from just under 10% to around 20%, thereby boosting its voting rights [1].
The news has sparked debate, with Lars Klingbeil, a member of the German government, expressing concerns about Unicredit's intentions. However, Unicredit CEO Andrea Orcel has shown no signs of being deterred by the resistance from Berlin and Frankfurt [2].
Commerzbank, a systemically important bank in Germany, has remained committed to its strategy and has resisted a potential takeover by Unicredit, emphasising its desire for independence [1][4]. The German government also continues to support an independent Commerzbank, rejecting the uncoordinated and unfriendly behaviour of Unicredit [2].
Unicredit plans to convert the remaining around 9% of Commerzbank shares, to which it has access through financial instruments, into shares "at an appropriate time" [1]. This move could further increase Unicredit's stake in the Frankfurt DAX company, making it the largest shareholder ahead of the federal government [3].
However, there is no official word from Unicredit that it has abandoned its takeover ambitions. Commerzbank's advisory board has expressed concerns about a potential takeover, highlighting its importance as an independent entity for German businesses [3].
It is important to note that the federal government of Germany still holds around 12% of the shares in Commerzbank, indicating its continued support for the bank [2][3]. Unicredit already has a foothold in the German market with Hypovereinsbank (HVB) [2].
In summary, while Unicredit has increased its stake in Commerzbank, the bank and the German government remain committed to maintaining Commerzbank's independence, and there is no official word on Unicredit abandoning its takeover attempt. Major concerns persist in Germany that a merger between Unicredit and Commerzbank could lead to job cuts and branch closures. The situation continues to be closely watched by both domestic and international financial markets.
EC countries, with their emphasis on the free movement of workers, are closely monitoring this industrial development, as the banking-and-insurance sector and businesses may potentially face changes due to the increased stake of Unicredit in Commerzbank. The finance industry, specifically banking, is under scrutiny as this move could influence competition and market dynamics.
