European takeover battle hots up with UniCredit’s ‘unfriendly attack’ on Commerzbank

UniCredit, Italy's second-largest lender, has launched a €34.7 billion takeover bid for German bank Commerzbank, escalating a long-running pursuit. UniCredit, which already holds just under 30% of Commerzbank, plans a share swap to exceed the 30% threshold that triggers a mandatory takeover bid under German law. The move is facing strong opposition from Commerzbank's board and the German government, which still holds a significant stake after bailing out the bank in 2008. The German government has voiced its support for Commerzbank remaining independent. Commerzbank, a major lender to Germany's Mittelstand businesses, has been subject to previous takeover attempts, including a failed merger with Deutsche Bank. UniCredit argues the offer is a pragmatic measure to foster engagement with Commerzbank and its stakeholders.

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