Overview

• UniCredit converted half of its synthetic holdings into physical shares on July 8, doubling its direct stake in Commerzbank to about 20% and overtaking the German state.
• The bank retains options on roughly 9% of Commerzbank’s shares and intends to exercise them “zu gegebener Zeit,” which would bring its total holding just below the 30% takeover-offer trigger.
• Regulators in Frankfurt, Brussels and Washington signed off on the derivative-to-share conversion earlier this year, removing a key obstacle to UniCredit’s stake-building strategy.
• Commerzbank’s management, Chancellor Friedrich Merz’s government and the Ver.di union have all condemned the move as uncoordinated and hostile to the bank’s independence.
• Commerzbank shares jumped about 5% to nearly €30 on July 8, lifting its market value above €35 billion amid takeover speculation.