A hostile takeover cannot be prevented
“Hostile takeover of the majority of shares in Commerzbank “cannot be prevented” given the fact that the bank is listed on the stock exchange and its shareholder base is broad and diversified, the German Finance Ministry wrote on Wednesday in response to questions from the lower house of parliament. Although Berlin may stand in the way of a full takeover because it holds 12 percent. shares in Commerzbank.
Italian lender UniCredit is considering taking over the majority of shares in Commerzbank. Such a transaction would lead to the creation of a bigger and better bank, says UniCredit executive director Andrea Orcel.
Germany criticizes UniCredit’s actions
The German government has repeatedly criticized its actions and plans Unicredit, making it clear that he is against a hostile takeover. New German Finance Minister Joerg Kukies he maintained this position on Tuesday.
Making a decision on whether UniCredit should take over Commerzbank may take up to a year, said Andrea Orcel. He added that he did not want to buy a German bank against Berlin’s will. UniCredit’s CEO explained that he is trying to “convince all key shareholders, including the German government” that the merger of the two banks is a good idea.
The German government criticizes not only the Italians’ plans to take over Commerzbank, but also the way in which they did so UniCredit increased its stake in the German lender when the government in Berlin issued shares of Commerzbank. Andrea Orcel defends itself against these accusations, explaining that the Italian bank signaled its interest in the German competitor and the purchase of shares should not be a surprise for Berlin.
This seems to be confirmed by the facts. According to the documents of the Ministry of Finance from November 5, the director of UniCredit for Germany, Marion Hoellinger, talked on September 4 with the deputy minister of finance, Florian Toncar, regarding the announcement from the previous day that Berlin intended to sell shares Commerzbank. The telephone conversation took place prior to the execution of the transaction the following week, so contacts between UniCredit and the German government took place during this period.
