According to individuals with knowledge of the matter, UniCredit has secured enough commitments to significantly increase its stake in Commerzbank beyond 30%, adding momentum to its €38.6 billion ($45 billion) bid for the German rival.
These sources stated that shareholders have tendered a sufficient number of shares to UniCredit's offer, which would raise the bank's direct holding from 26.8% to over 30%. The individuals requested anonymity as the information is not yet public.
Crossing the 30% threshold is a significant development for UniCredit's Chief Executive, Andrea Orcel, who has been pursuing the acquisition of Commerzbank for nearly the past two years. This move will bolster Orcel's influence and make it more difficult for the target company to resist his advances, despite the German government's firm backing of the camp opposing the takeover deal.
This progress also indicates that at least some investors have shown a degree of interest in the acquisition proposal, even though its implied valuation is below Commerzbank's current market price. The tender offer, which has been open to investors since early May, will remain available until June 16.
Representatives for both UniCredit and Commerzbank declined to comment.
Comments