UniCredit to strengthen stake in Commerzbank to 30% laying groundwork for potential takeover
UniCredit launched a voluntary takeover offer for Commerzbank on Monday.
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The Milan-headquartered UniCredit already holds a 28% stake in Commerzbank, comprising about 26.04% in shares with the rest in total return swaps. The deal is expected to involve an offer exchange ratio of 0.485 shares of UniCredit per share of Commerzbank, implying a 30.80 euro price per Commerzbank share, or a 4% premium. UniCredit. UniCredit shares are down 10.5% year-to-date, while Commerzbank's share price has fallen more than 18% since the start of the year. Under German takeover regulations, a 30% stake requires a mandatory offer for the remaining shares. UniCredit's bid is designed to overcome this 30% cliff-edge without reaching control. UniCredit CEO Andrea Orcel said he does not expect the stake to go significantly above 30%. Taking its stake to 100% would eat up 200 basis points of the bank's capital, Orcel added in comments reported by Reuters. "A full takeover scenario is remote," Orcel said. watch now VIDEO 2:30 02:30 Unicredit makes takeover bid for Commerzbank Squawk Box Europe Orcel told CNBC last June that Commerzbank's share price then was too high for a merger deal. The offer is expected to formally launch at the start of May, with UniCredit set to hold an Extraordinary General Meeting on May 4 to seek authorization for the related capital increase. The German government holds about 12.72% of Commerzbank shares. BlackRock is the third biggest shareholder, with 5.73%, with Norges Bank Investment Management holding 3.14%. This is a breaking news story. Please refresh for updates. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news. Subscribe to CNBC PRO Subscribe to Investing Club Licensing & Reprints CNBC Councils Select Personal Finance Join the CNBC Panel Closed Captioning Digital Products News Releases Internships Corrections About CNBC Site Map Podcasts Careers Help Contact News Tips Got a confidential news tip? We want to hear from you. Get In Touch CNBC Newsletters Sign up for f...
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