German regulator faces scrutiny from Commerzbank over UniCredit stakes.

A Commerzbank statement suggests that UniCredit's communications about the tender offer may have been inaccurate. UniCredit maintains its reporting of tender offer developments has been transparent and factual.

German lender Commerzbank has initiated communication with BaFin regarding UniCredit's disclosure of its tender offer acceptance rates. The discussions stem from UniCredit's recent statements about the take-up of its offer for Commerzbank.

According to internal documents obtained Commerzbank has revealed that nearly 8% of tendered shares appear to be connected to UniCredit's financial counterparts, rather than individual investors.

Commerzbank is scrutinizing UniCredit's holding structure, specifically a 27% equity stake and approximately 16% via derivatives that can only be resolved through financial settlement. This arrangement allows UniCredit flexibility in determining the total value of its investment.

Commerzbank, Germany's second-largest lender, cautions against premature judgments regarding investor backing for UniCredit's bid, emphasizing a need for thorough evaluation of all relevant information.

The regulatory team is intensely scrutinizing this situation, maintaining regular communication with BaFin to ensure a thorough understanding of all developments.

As of current data, there is no evidence to suggest that any institutional investor has initiated a tender offer, with only 0.05% of total retail tenders made so far.

UniCredit's internal message suggests its communication may have been intentionally misleading, implying that investors would be irrational to sell shares at the offered price of 7.58% when the market value exceeds it, as previously stated by UniCredit itself.

UniCredit declined to address unsubstantiated claims, instead reiterating that its Commerzbank investments were accurately reflected in previously disclosed information and reports.

Tensions between Commerzbank and UniCredit have reached a boiling point, potentially jeopardizing UniCredit's integration efforts if control is achieved by them.

A pivotal moment in the long-standing struggle for dominance at Commerzbank unfolded last month when UniCredit made a takeover bid, only to be decisively spurned by the German lender.

UniCredit announced on Tuesday its successful bid to surpass the 30% mark in its direct stake, which is not a power play to dominate Commerzbank but rather a strategic move to elevate its existing 27% holding. With this milestone achieved, UniCredit will be able to acquire additional shares of Commerzbank through market transactions in 2024.

Commerzbank lender Commerzbank has initiated communication with BaFin regarding UniCredit's disclosure of its tender offer acceptance rates. The discussions stem from UniCredit's recent statements about the take-up of its offer for Commerzbank.