Unicredit has secured the option to increase its stake in Commerzbank – a hostile takeover is looming. Unicredit boss Orcel is keeping all options open.
After joining Commerzbank, Unicredit CEO Andrea Orcel is keeping all options open – but emphasizes the advantages of a cross-border merger. “Commerzbank is an investment. Nothing else.” There is currently no takeover offer, said Orcel at a Bank of America conference in London.
A merger with the Frankfurt-based DAX group could, however, become a “test case for Europe,” which needs larger banks. “We can come together and do something bigger.” Commerzbank is a good strategic fit for the major Italian bank.
The German banking market is fragmented and Unicredit has local experience, said Orcel, referring to the subsidiary HypoVereinsbank (HVB), which was taken over by Unicredit in 2005. At the same time, Orcel stressed again that Unicredit is not under pressure. “We can also sell the Commerzbank share again.” In large mergers, agreement on both sides is required.
When asked whether the bank had held talks with the German government, which opposes Unicredit’s actions, Orcel replied: “We have spoken repeatedly with large, important shareholders.” Unicredit is open to renewed dialogue.
Unicredit took advantage of the federal government’s partial exit and invested in Commerzbank on a large scale. Most recently, it secured the option to increase its stake from nine to 21 percent through financial instruments. This would make Unicredit by far the largest shareholder – ahead of the federal government, which holds around 12 percent.
Source: Stern
