Overview

• After receiving clearance from the European Central Bank, U.S. Federal Reserve and Bundeskartellamt, UniCredit converted roughly half of its Commerzbank derivatives into shares.
• The move doubled its direct holdings to about 20%, overtaking the German government’s 12% stake as the bank’s largest shareholder.
• UniCredit retains options on an additional 9% of Commerzbank stock that could push its stake close to the 30% level requiring a mandatory takeover offer.
• Commerzbank’s management, the Verdi union and federal officials denounced the uncoordinated increase as hostile and pledged to defend the bank’s independence.
• Chief Executive Andrea Orcel has proposed merging Commerzbank with UniCredit’s HypoVereinsbank to secure economic and social benefits from a consolidated European lender.