Overview

• UniCredit said it converted more derivatives into shares, taking its direct Commerzbank holding to around 26 percent and cementing its status as the largest shareholder.
• The bank signaled it will convert remaining instruments in due course, which would bring its stake to about 29 percent, with a mandatory offer required by law at 30 percent.
• Supervisors have already cleared increases to just under 30 percent, with the ECB and Germany’s Bundeskartellamt previously granting approvals.
• The German government, Commerzbank management and employee representatives oppose UniCredit’s advance, and the state’s roughly 12 percent holding is not up for sale.
• UniCredit stated it is not currently seeking a board seat but will monitor Commerzbank’s progress, while Commerzbank underscores higher profit targets, planned job reductions and rising payouts to defend its independence.