MILAN (Reuters) -UniCredit has no plans to heed the advice of the German government to drop its ambitions to take over Commerzbank, the Italian bank’s CEO was quoted as saying on Friday.
German Finance Minister Lars Klingbeil on Thursday told press agency DPA that the government expected UniCredit to abandon its takeover plans, reiterating that Berlin saw the approach as “unfriendly” and backed Commerzbank’s independence.
“On Commerzbank we’ll press ahead despite the German government’s stance. We were invited in September to buy a 4.5% stake, it’s not clear why we should go away now,” Il Messaggero quoted UniCredit CEO Andrea Orcel as telling a board meeting on Thursday.
UniCredit this week doubled its equity and voting stake in Commerzbank by turning derivatives into shares.
It lifted the equity portion of its 29% stake in Commerzbank to around 20%, from 9% previously, and said it would eventually acquire the full position in equity.
“We’ll convert the remaining derivatives and go to 29%. We have asked for a meeting to outline our strategy and we’ll wait until we’re listened to. Our approach is respectful of Commerzbank’s specific characteristics,” Orcel was quoted as saying.
UniCredit first emerged as the biggest private investor in Commerzbank in September when it bought 4.5% from the German government and disclosed a similar-sized stake it had built in the preceding months.
In December it used derivatives to increase the stake, and this year obtained European Central Bank approval to own up to 29.9% of Commerzbank.
Orcel’s acquisition strategy has run into difficulties at home, with a bid for smaller peer Banco BPM hampered by conditions the Italian government has set to authorise it.
A court ruling on UniCredit’s appeal against the government’s conditions is due by July 16. UniCredit has asked the court to annul the entire decision. It could modify only some of the terms.
“We would still be in an uncertain situation which discourages investors, weighs on the market, like I said before, the conditions to go ahead with the deal are not there,” Il Messaggero quoted Orcel as saying.
(Reporting by Valentina ZaEditing by Mark Potter)
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