UniCredit’s Move in Germany. The European Risk Game Begins with Commerzbank
UniCredit entered the second largest German bank with a real blitz which caught him completely off guard German government further embarrassing Chancellor Olaf Scholz. 24 hours after the announcement, the Italian bank’s stock is up on Piazza Affari by +0.72 at 36.415 euros. Thus the CEO of UniCredit Andrea Orcel moves towards the Germany and enters decisively into the capital of CommerzbankThe Italian bank announced yesterday that it has 9% of the capital in hand of the German institute in progress privatization. This is a total investment of approximately 1.5 billion (of which approximately 700 million in ABB), and an impact of only 15 points on the Cet 1 – which does not change UniCredit’s current generous distribution policy – the Italian group is making a move with results yet to be written, but with the clear intent of structuring a cross-border alliance that, if achieved, could create the first German bank. And redraw the balance of the European banking system.
Half of the share – continues Il Sole – was purchased as part of the accelerated book building launched in the last few hours by the German Government (which must reduce its stake from the initial 16.5%) in the institution saved in 2008. The remaining 4.5% was purchased directly from UniCredit instead on the market in recent weeks. UniCredit has certainly put the best financial proposal on the table, beating even those of competitors of the caliber of BNP Paribas and Ingso much so that the Commerz shares were assigned to it in compliance with the “principle of economic efficiency“, as highlighted by the German Federal Government. Words and messages that aim to immediately smooth out the rough edges of a a comparison, even a political one, destined to last.
The bone of contention – the purchase of a large German bank by an Italian – immediately aroused the German trade unions raise their shieldsfearful of possible cuts. The CEO of UniCredit himself yesterday made a courtesy call to the top management of the German group, without however raising strategic issues such as a potential acquisition. Messages of peace aside, Orcel’s clear intention is to continue to strengthen participation: the German government still has 12% of the capital to sell in view of privatization, a share that will remain frozen for at least the next 90 days. However, to go beyond the 10% quota, the approval of the ECB is needed. And precisely in view of this possible overcoming, “UniCredit will present the authorization requests to the competent authorities, if and when necessary”.
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