UniCredit rebuffs hostile takeover attempt
When Unicredit boosts its shares in Commerzbank noticeably, there's apprehension that the substantial bank might engulf the German one. Unicredit's leader now declares that they won't present a public takeover bid unless invited.
Unicredit CEO Jean Pierre Mustier has turned down the idea of a direct takeover bid for Commerzbank. Such a move would be overly aggressive, he stated in a talk with the Italian newspaper "Il Messaggero," which has since been published. They have no real hurry to expand their Commerzbank stake past the 9% they currently hold.
The German government gave Commerzbank shares to Unicredit since it believes the Italian bank to be a trustworthy and appropriate investor. They will acquire the remaining Commerzbank shares from the German government if the latter chooses to sell and if Unicredit is welcomed.
In an interview with the "Frankfurter Allgemeine Zeitung" (FAZ), Mustier also mentioned the possibility of selling their Commerzbank shares. Unicredit has engaged in discussions throughout the year with various interested parties, including the German government. "If we felt unwelcome - whether that's the case today is yet to be determined - we wouldn't have pursued this strategy. Because in these transactions, the primary parties must agree," said the bank head. The German government was aware of Unicredit's interest in Commerzbank. "We have repeatedly communicated our interest in Commerzbank to the German government and various other parties for the past 2 to 3 years."
Berlin suddenly chooses to pause
He hopes for a constructive dialogue with Commerzbank management and the German government at an appropriate moment. In a recent auction, a 4.5% stake in Commerzbank exclusively went to Unicredit, while another 4.5% was obtained on the market. Commerzbank has thus far responded cautiously to Unicredit's advances and requested the government maintain its 12% stake in the bank. Commerzbank prefers more tranquility. Next week, it intends to review its options at a strategy meeting.
The German government has announced its intent to evaluate the new situation. News agency Reuters reported last week that while the decision to gradually decrease the government's share still stands, the sudden emergence of the Italians has altered the situation, so no sales are expected as of now. It will wait and observe. Sources informed by Reuters revealed that the Italian government envisions positive outcomes from a merger between Unicredit and Commerzbank, provided the headquarters remain in Italy. The Milanese intend to request authorization from the supervisory bodies to potentially acquire up to 30% of Commerzbank, according to other insiders.
An earlier approach to Commerzbank during Mustier's tenure as Unicredit CEO faced resistance in Italy. The primary reason was proposals for a holding company in Germany. Cross-border mergers have often faced criticism in Rome in the past, as Italian banks hold significant influence in funding the nation's remarkable debt.
Mustier told the FAZ that he could boost his stake, keep it at the current level, or sell it. A withdrawal was not his preference. "At present, we are simply a financial investor in Commerzbank. We could also sell our stake and realize a significant profit, as Commerzbank's share price has climbed steadily." He advocated for more competition in the German banking market, saying, "Another powerful and profitable bank could contribute to achieving that."
Commerzbank and Munich-based HVB, currently part of Unicredit, make promising partners, he said, citing favorable reactions from companies, notably from the mid-tier sector. Mustier verified that the German government was aware of his interest, having expressed it repeatedly in the past. His bank was not unwelcome in the latest auction.
According to Mustier, the government would have preferred multiple investors. Nevertheless, he insisted that this was not a covert attempt with hostile intentions. Nine percent is a significant stake, but not a majority. "We could have made a full takeover bid, but we chose not to."
The Italian bank Unicredit, represented by its CEO Jean Pierre Mustier, has repeatedly expressed its interest in Commerzbank to both the German government and other parties for several years. If the German government decides to sell its shares in Commerzbank, The Commission, as the European Union's regulatory body, would need to review and approve any potential sale or investment by Unicredit due to its significant stake in the German bank.
