Commerzbank Questions UniCredit’s Bid Support
Commerzbank, the prominent German bank, has once again raised questions about the increasing number of shares tendered into UniCredit’s bid. The bank has cast doubt over whether this can be viewed as a sign of wide-ranging investor support. Commerzbank underlined shareholder structure data, which it claims show that “not a single institutional investor identified as having tendered shares into the offer”.
The bank alleges that it is a “reasonable assumption” that the tendered shares originate almost exclusively from banks and parties connected to UniCredit. This allegation comes amid an ongoing dispute between the two banking giants, as reported by Bloomberg.
Unusual Surge in Stock Lending
Adding to its concerns, Commerzbank also noted an “unusual” increase in the volume and timing of its stock lending over recent weeks. Following the takeover announcement, the bank’s security lending activity reportedly expanded more than tenfold.
Given these circumstances, Commerzbank has advised investors to “refrain from drawing definitive conclusions regarding ownership positions, influence, control or the ultimate level of shareholder support for the offer” at this stage.
Accusations of Misinformation
In response to Commerzbank’s claims, UniCredit accused the German bank of disseminating “increasingly serious and unfounded misinformation”. UniCredit also firmly denied any insinuation that it has “wilfully conflated disclosure categories” to create an impression of investor support for its offer. It stated that these accusations are “without factual or legal foundation”.
UniCredit’s Ownership Stake in Commerzbank
UniCredit, in its latest filing, stated that shareholders representing 10.95% of Commerzbank’s share capital have accepted the offer. This figure has seen a slight increase from 10.91% on Tuesday and 7.58% a week earlier. UniCredit also separately owns a 26.77% stake in Commerzbank.
As of Tuesday’s closing price, the bid implied a value for Commerzbank of about €37.5bn ($43.3bn), compared with a market capitalisation of roughly €39bn.
The offer from UniCredit has been open since early May and is due to run until 16 June. Still, takeover rules could lead to an extension.
Commerzbank’s Concerns Over UniCredit’s Transparency
Commerzbank stated on Wednesday that “None of the tendering parties connected to UniCredit held material stakes in Commerzbank prior to the takeover offer.” The bank added: “UniCredit’s disclosures continue to fall short of the required level of transparency and cannot be regarded as evidence of independent shareholder support for the offer.”
Furthermore, Commerzbank said it had “observed a significant increase in securities lending activity involving its shares in recent weeks,” and that “Since the announcement of the offer, lending activity has increased more than tenfold.”
This ongoing dispute between the two banks is being closely monitored by the financial world, with the outcome having potential implications for investor confidence and the overall banking landscape.
For more information on the unfolding situation between Commerzbank and UniCredit, you can read the full report Here.
