1 week ago
Commerzbank Chair Urges Review After UniCredit Takeover Bid
UniCredit, an Italian bank, tried to gain control of Commerzbank, a German bank.
Commerzbank chair Jens Weidmann said Germany's takeover rules may need to change.
He argued that UniCredit gained enough support without paying shareholders a large enough extra amount.
Weidmann said fewer than 18% of the shares that could have been offered were actually tendered.
He said most of those shares came from banks connected to UniCredit rather than ordinary investors.
UniCredit had accumulated a 48% stake by July.
That stake was enough to determine shareholder decisions, according to the report.
However, regulatory approvals were still needed before the deal could be completed.
Weidmann also said Germany should keep its existing Commerzbank stake for now.
Commerzbank supervisory board chair Jens Weidmann called for Germany to review its takeover rules.
He said UniCredit gained a majority without offering shareholders an adequate control premium.
Weidmann said fewer than 18% of roughly 73% of eligible Commerzbank shares were tendered.
He said institutional and retail investors contributed less than three percentage points, with the remainder coming from UniCredit-linked banks.
UniCredit had built a 48% stake by July, while regulatory approvals were still required before it could take possession of tendered shares.
- Who
- Jens Weidmann, chair of Commerzbank's supervisory board, and UniCredit.
- What
- Weidmann called for a review of German takeover rules after UniCredit gained effective control of Commerzbank.
- Where
- Germany, involving Commerzbank and its takeover by Italy's UniCredit.
- When
- The comments were reported on August 23; UniCredit's stake had reached 48% by July.
- Why
- Weidmann said UniCredit secured a majority without paying an adequate control premium to shareholders.
Key facts
- Commerzbank stake
- UniCredit had accumulated a 48% stake by July.
- Eligible shares
- Approximately 73% of Commerzbank shares could have been tendered to UniCredit.
- Shares tendered
- Fewer than 18% of eligible shares were tendered, according to Weidmann.
- Investor participation
- Institutional and retail investors accounted for less than three percentage points.
- Control
- The 48% stake was sufficient to determine shareholder resolutions.
- Deal status
- Regulatory approvals were still required before UniCredit could take possession of the tendered shares.
- German government stake
- Weidmann said the German government should retain its Commerzbank stake for now.
Quotes
Jens Weidmann
Chair of Commerzbank’s supervisory board
“UniCredit was thus able to achieve a majority with a financially unattractive offer without paying an appropriate control premium. That raises questions about takeover law in Germany, which lawmakers may want to examine.”
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Sources
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