Unicredit is now permitted to use its own shares for acquiring additional shares in Commerzbank starting February 22, raising the stakes in their ongoing takeover battle.
Starting February 22, Unicredit will have the option to pay for the acquisition of additional Commerzbank shares using its own shares, significantly changing the dynamics of the takeover battle between the two banks. This change is pivotal as it allows Unicredit to increase its stake in Commerzbank from its current 26% to over 30%, triggering the obligation to make a minimum bid to other shareholders. Moreover, this shift in the acquisition strategy also emphasizes the importance of communication with existing shareholders, which will now play a critical role in shaping the response to Unicredit's moves.
The German takeover law permits buyers to pay in their own shares if they have not acquired more than 5% of voting rights or shares in cash in the six months leading up to a takeover. This means that Unicredit can leverage its stock in a potentially advantageous way, making it more appealing for them to increase their shareholding. The strategic implications of this are substantial, as retaining shareholder support will be essential for Unicredit should it pursue further acquisitions amidst the competitive landscape of the banking sector.
Commerzbank has positioned itself as ready to fend off this potential takeover, suggesting they are preparing their own strategies to counter Unicredit's advances. The timeline leading up to February 22 will be crucial not only for Unicredit's tactical maneuvers but also for Commerzbank's communication and defense strategies as they work to protect their share value and independence amidst the pressures of the takeover environment.
