UniCredit: Commerzbank takeover bid intended to resolve 'stalemate'

UniCredit said on Monday that it has submitted a long-anticipated takeover bid for Commerzbank after months of dispute fuelled by German fears that an increased Italian stake in the country's second largest private bank might reduce its independence and lead to widespread job cuts.

"The goal is to [re]solve the stalemate," Orcel told a conference hosted by Morgan Stanley, following some initial confusion over UniCredit's offer, which Commerzbank management said had come as a surprise.

UniCredit already holds a roughly 29% stake in Commerzbank, making it its largest shareholder. The German government, which rescued Commerzbank during the 2008-09 financial crisis, holds around 12%.

Exceeding a 30% stake legally obliges UniCredit to make a takeover offer to other shareholders.

Announcing its takeover bid earlier this week, the bank said it expects to "achieve a stake in Commerzbank in excess of 30% without reaching control."

The offer would allow UniCredit to avoid having to sell shares to stay below the 30% threshold during Commerzbank’s ongoing share buyback programme. It would also give the Italian bank greater flexibility to increase its stake further in the future.

Orcel clarified that the offer targets "100%" of Commerzbank shares.

He called for "constructive dialogue" with all parties involved after unsuccessful attempts made over the past 18 months to achieve this.

With the offer due to be officially submitted in May followed by a four-week acceptance period, Orcel stressed that UniCredit had created a 12-week window for talks.

The aim was to establish a more open dialogue with Commerzbank in order to unlock value potential, he said, but added he was also open to other scenarios should the talks take a different turn.

Orcel said he was convinced the result would be a "a win-win situation."