UniCredit's holding in Commerzbank now stands at a substantial 34.4% following its acquisition efforts. The Italian bank made this announcement on Tuesday, amidst significant opposition to its takeover bid in Germany, which was initiated on May 5.
Data released by UniCredit reveals that investors have submitted Commerzbank shares accounting for a substantial 7.6% of the bank's capital, as of this week in Frankfurt.
Related ↗Economic growth in Northern Ireland outpaces rest of the UK post-Brexit.The tender offer remains open until June 16, with the current price representing a markdown from prevailing market rates. Investors often delay making a move until the final stretch of the bidding process.
UniCredit's voluntary exchange offer aimed to push its existing 27% Commerzbank stake over the 30% threshold, thereby enabling the Italian bank to acquire additional Commerzbank shares at a later stage with a significant 34% stake.
Read next ↗British inflation rate remains steady at a 13-month low beforehand.UniCredit's overall holding in Commerzbank now stands at a substantial 34%, bolstered by both direct ownership and derivatives covering 16.4% of the share capital. The latter can be settled only through cash, allowing for potential adjustments to the final stake.
UniCredit now holds 37.6% of Commerzbank shares following the bid.
The German finance ministry is cognizant of the current situation, with no change in their stance. The government retains a significant stake in Commerzbank, holding 12% of its shares, despite rejecting UniCredit's bid as hostile.
Under intense scrutiny, UniCredit's CEO Andrea Orcel must now navigate the complexities of a potential merger, a challenge he has faced before but not yet overcome successfully since taking office in 2021.
UniCredit has committed to meeting specific financial performance targets, ensuring that UniCredit retains control over Commerzbank even if its stake reaches a substantial 34%.
UniCredit is offering 0.458 new shares for every Commerzbank share submitted in the tender process. This translates to a valuation of €35.75 per Commerzbank share, which falls short of Monday's closing price at €73.72 per UniCredit share.
UniCredit's goal was to exceed a crucial 30% threshold, thereby securing its stake and maintaining flexibility in case of future share acquisition opportunities, according to the bank's statement.
