Germany Hits Back at UniCredit's Strategic Raid on Commerzbank

Germany intensifies opposition to UniCredit's substantial acquisition of Commerzbank shares, while the Italian bank's CEO, Andrea Orcel, advocates for dialogue. With Berlin, Commerzbank management, and trade unions against the deal, UniCredit's move tests European banking consolidation and challenges Commerzbank's new CEO, Bettina Orlopp.

Germany has ramped up its resistance to UniCredit's recent acquisition of a substantial stake in Commerzbank, coinciding with calls for dialogue by a prominent investor in the German lender. The move by UniCredit's CEO, Andrea Orcel, comes weeks after the Italian bank shocked politicians and market players with its cross-border European banking ambitions.

Berlin, which owns a 12% stake in Commerzbank, along with the bank's management and trade unions, stands firmly against the acquisition. Top German officials have branded UniCredit's tactics as 'aggressive' and 'unwise.' Despite this, Orcel maintains that all options, including abandoning the effort, are under consideration as the bank continues to increase its position.

Orcel asserted that UniCredit's stake in Commerzbank is purely an investment with no intentions of making a formal offer or seeking a board seat. He pressed for further discussions, highlighting UniCredit's readiness to engage with stakeholders constructively. The escalated tensions, compounded by UniCredit's use of derivative instruments to raise its holding to nearly 21%, have drawn sharp criticism from German leaders, including Finance Ministry State Secretary Florian Toncar.

(With inputs from agencies.)