Overview

• UniCredit currently holds just over 26% of Commerzbank and can convert remaining instruments to lift its stake to roughly 29%, with regulators having cleared increases up to 29.9%.
• Orcel framed the deal as revenue-driven, pledging to invest in the branch network and suggesting central-office job cuts would be fewer than widely rumored.
• Commerzbank CEO Bettina Orlopp said the bank’s stance would only change if UniCredit crosses 30% and tenders a formal offer, as management focuses on value creation.
• Commerzbank’s works council, unions, and the German government oppose UniCredit’s approach, and the state still holds more than 12% of the lender.
• Orcel said any combination would ultimately be decided by shareholders and boards and signaled a greater effort to engage with policymakers.