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UniCredit Meets Commerzbank Target with 34% Stake

MILAN, June 2 (Reuters) - Italian bank UniCredit has increased its direct stake in Commerzbank to 34.4%, it said on Tuesday, ​under the takeover bid it launched on May 5 amid widespread hostility in Germany.

* ‌Investors have tendered Commerzbank shares representing 7.6% of the Frankfurt-based bank's capital as of Tuesday, according to data UniCredit publishes weekly under German takeover rules.

* The bid runs until June 16 and it is ​currently at a discount to market prices. Institutional investors typically wait with their ​decision until the last few days of the tender period.

* UniCredit has ⁠said its voluntary exchange offer was intended to nudge its 27% Commerzbank stake just above ​the mandatory takeover threshold of 30%, allowing the Italian bank to buy more Commerzbank shares ​on the market later.

* In addition to its direct stake, UniCredit holds derivatives on 16.4% of Commerzbank's share capital, but most of those can only be settled in cash, which the bank said gave ​it the option to lower its final stake if needed.

Including some share-settled derivatives, UniCredit's Commerzbank ​holding stands at 37.6%.

* A German finance ministry spokesperson said the government was aware of the latest ‌developments ⁠and that its position remained unchanged. Germany still owns 12% of Commerzbank and it has rejected UniCredit's approach as hostile.

* UniCredit Chief Executive Andrea Orcel, a veteran investment banker, is under pressure to clinch a deal after he put the brakes on various previous takeover ​attempts since becoming CEO ​in 2021.

* He ⁠has pledged to meet certain financial return criteria which require UniCredit to avoid a situation where regulators declare it in control of Commerzbank ​without majority ownership.

* The Italian bank is offering 0.458 new UniCredit ​shares for each ⁠Commerzbank share tendered. Based on Monday's closing price of €73.72 per UniCredit share, the bid values Commerzbank at €35.75 a share - below Monday's closing price of €37.

* "UniCredit has met the objective ... of exceeding 30% ⁠to ​ensure certainty with regards to its stake and create ​optionality following the offer to acquire further shares, as and when the opportunity arises," it said.

Additional reporting by Friedrike ​Heine and Kristian Kraemer in Berlin; Editing by Gianluca Semeraro, Gavin Jones and Tomasz Janowski

Source: Reuters


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