UniCredit seeks to raise Commerzbank stake above 30 percent
UniCredit launched an unsolicited bid to raise its Commerzbank stake above 30 percent today. German officials and the bank voiced reservations about the move.
Italy's UniCredit S.p.A. has launched an unsolicited bid to increase its stake in Commerzbank AG above 30%, a move that crosses the mandatory takeover threshold under the laws of Germany. The announcement on Monday represents a significant escalation in the 18-month effort to bring the German lender to the negotiating table for a potential merger.
Commerzbank has a long and often difficult history with major mergers and acquisitions. Founded in 1870, the bank moved its headquarters to Frankfurt in 1970 to focus on corporate and retail banking. Its most significant acquisition occurred in 2008 when it agreed to buy Dresdner Bank from the insurer Allianz SE for $14.5 billion. The timing of the deal, coinciding with the global financial crisis, forced Commerzbank to become the first commercial bank in the country to seek a government bailout. By 2009, the German government held a 25% plus one share stake in exchange for a 10 billion euro capital injection.
