UniCredit surprised markets two weeks ago by revealing it had acquired a 9% stake in Commerzbank for about €700 million ($771.3 million), after outbidding other hopefuls.
On Monday, Italy's second-biggest lender caught financial experts off guard again when it announced it had taken another 11.5% through financial instruments, bringing its total ownership to around 21%. In addition, UniCredit said it had requested European Central Bank (ECB) permission to raise its stake to 29.9% — just short of the 30% threshold that would require it to make a public offer for the entire bank.
In a statement, UniCredit also said it had "full flexibility and optionality to either retain its shareholding, sell its participation or increase the stake further."
Earlier this month, the German government, which bailed out Commerzbank after the 2008/09 financial crisis by taking a 16.5% stake, tipped off potential buyers that it wanted to sell part of its holdings in the country's second-biggest lender.
Although the German state remains Commerzbank's biggest shareholder, the sale of just over 53 million shares reduces the government's stake to 12%.
UniCredit is now also one of Commerzbank's biggest shareholders, and the share purchase paves the way for a potential takeover. UniCredit chief executive Andrea Orcel told Bloomberg on Thursday (September 19) that he was considering that option.
Any takeover would create an entity that would surpass Deutsche Bank as Germany's biggest lender. Deutsche Bank explored a merger with Commerzbank in 2019, but it ended........