Key facts
- UniCredit's €35 billion hostile takeover bid for Commerzbank expires Tuesday.
- UniCredit claims to have exceeded the 30% threshold for its bid.
- The German government has rejected the offer, citing an inadequate premium.
- Commerzbank is pursuing a strategy of independence and has unveiled a plan to strengthen profitability.
- A preliminary investigation into possible market manipulation has been opened by Frankfurt prosecutors.
UniCredit's hostile takeover bid for Commerzbank is set to expire, with the Italian bank announcing it has surpassed a 30% threshold. The offer, valued at €35 billion ($40.6 billion), has faced significant opposition from Commerzbank and the German government, who deem the price inadequate and are committed to Commerzbank's independence.
Commerzbank's CEO, Bettina Orlopp, has presented a strategic plan aimed at enhancing profitability by 2030, which includes job reductions. The German lender has also requested an examination by BaFin, the financial markets regulator, into what it describes as potentially misleading information from UniCredit regarding its stake. Frankfurt prosecutors have initiated a preliminary investigation into possible market manipulation.
UniCredit maintains that its disclosures comply with regulations and accuses Commerzbank's management of creating a misleading narrative. The Italian bank also asserts its right to appoint shareholder representatives to the supervisory board, a claim contested by Commerzbank's CEO, who points to an agreement with Berlin.