UniCredit Closes in on Commerzbank Takeover
Commerzbank said fewer than 2% of retail and institutional investors tendered shares as UniCredit moved closer to control of the German lender.
- On Wednesday, UniCredit disclosed it now holds less than 50% of Commerzbank shares, advancing its hostile takeover bid led by CEO Andrea Orcel in the €45 billion deal.
- Germany's federal government, holding a 12% stake in Commerzbank, opposes the move, reflecting widespread resistance to merging the two lenders across European borders despite central bankers wanting tie-ups.
- Commerzbank reported less than 2% of investors tendered shares, describing the offer as having 'low "attractiveness' with most participants connected to UniCredit, undercutting Orcel's momentum.
- Orcel may amend swap contracts to reach majority control or purchase shares on the open market next year, while anticipating the European Central Bank will soon confirm UniCredit's de facto control.
- Thorsten Beck, director of the Florence School of Banking and Finance, described the strategy as an 'elephant in the porcelain shop,' warning that while money often wins, significant risks remain for UniCredit.
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Italy's UniCredit is one step away from taking over Germany's Commerzbank. This week, it increased its stake to 47.6 percent, moving closer to effectively controlling the bank, in which the state still holds a 12 percent stake. Employees have called the Italians' move hostile and are warning of thousands of layoffs and billions in savings.
UniCredit closes in on Commerzbank takeover
Italy's second biggest bank, Unicredit, is closing in on a takeover of Germany's second biggest bank Commerzbank after saying it secured 47.6% of the lender's shares on Wednesday. The move is facing widespread opposition in Germany, notably from the federal government, which has a 12% stake in the company. Also, new "freedom fuel" filling stations are appearing across the United States, offering cheaper petrol and receiving strong backing from t…
Commerzbank CEO Bettina Orlop excludes a resignation and wants to negotiate with Unicredit CEO Orcel. Nevertheless, the Milanese in Frankfurt are still far from being able to govern – and the works council continues to face opposition.
With its takeover offer, Unicredit has barely missed the majority of Commerzbank. Has Commerzbank failed with its defense attempt? CEO Orlop sees this differently.
Here you will find information on the topic "Acquiescence with Unicredit". Read now "Orlop: "Unicredit needs more than just control".
It has managed to obtain control of one of the main German banks: how and how much it will be able to exercise this control is to be seen
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