Harsh reaction of the German government to the last UniCredit’s move into Germany. The bank led by Andrea Orcel “has once again taken uncoordinated and unfriendly action”, an executive spokesperson said, after UniCredit subscribed to new financial instruments related to the shares Commerzbankin line with the previously stated objective of reaching a share of up to 29.9%. UniCredit’s overall position amounts to now at around 28%of which 9.5% through direct participation and approximately 18.5% through derivative instruments.
The UniCredit operation
UniCredit explained that the average entry price for the entire position in Commerzbank is lower than the current prices and meets all the financial parameters that the bank is committed to respecting its shareholders, we read in a note, where it is also underlined that UniCredit’s economic exposure is “almost completely covered, demonstrating prudence in the approach and guaranteeing full flexibility and optionality“.
This operation “confirms UniCredit’s opinion that there is a presence within Commerzbank a significant value that must be consolidated” and “reflects confidence in Germany, its businesses and its communities, as well as the importance of a strong banking sector in supporting the country’s economic development.”
The position currently remains only an investment and it has no impact on the public exchange offer with Banco BPMis underlined. UniCredit’s move came in the aftermath of Banco BPM’s request to CONSOB for the adoption of measures to protect all the stakeholders of the bank and the market as well as the public offer promoted on Anima shares.
Germany’s position
Going into detail, the German government said it was committed to finding a solution for Commerzbank and rejected UniCredit’s “uncoordinated and unfriendly approach”. Berlin, the spokesperson added, is working on a solution for Commerzbank and regrets that UniCredit’s new initiative has been taken before the German legislative elections which will be held in February.
“The federal government also has a critical view of UniCredit’s plans because the integration of two large, systemically important banks always entails considerable risks, for example for employees,” he added.
The appointment in Commerzbank
Also in the last few hours, the German government has proposed that Sabine Lautenschlaeger be elected in supervisory board of Commerzbank.
“We are very pleased that Lautenschlaeger, as former banking supervisor and member of the Executive Board of the ECBwould like to contribute your extensive knowledge and experience to the work of the supervisory board – said Eva Grunwald, who sits on the board of the German Finance Agency.
