Italian lender UniCredit announced on Monday that it has boosted its stake in German rival Commerzbank to approximately 21 percent, making it the largest shareholder. Italy’s second-largest bank, which caught markets off guard ten days ago by disclosing a nine-percent stake in Commerzbank, stated it acquired an additional 11.5 percent through financial instruments.
UniCredit further revealed that it has sought permission from the European Central Bank to increase its stake to 29.9 percent. The news of its intention to raise the stake sparked speculation that UniCredit, which already owns German lender HypoVereinsbank, might consider a full takeover of Commerzbank. However, UniCredit CEO Andrea Orcel dismissed the possibility of a takeover in an interview last week.
On Monday, the Italian lender clarified that it has “full flexibility and optionality to either maintain its shareholding, sell its participation... or further increase the stake.” The decision will hinge on discussions with Commerzbank, its management, supervisory boards, and broader stakeholders in Germany, according to UniCredit. Commerzbank did not respond immediately to a request for comment.
Berlin provided Commerzbank with billions of euros in bailout funds in 2009 after the global financial crisis nearly pushed it to collapse.
