Commerzbank Stock Up As UniCredit Lifts Stake To About 28%

(RTTNews) - Shares of Commerzbank AG (CRZBY.PK) were gaining around 3 percent in the morning trading in Germany after the Italian banking group UniCredit SpA (UCG, UNCFF.PK) announced that it has raised its stake in the German lending major to around 28 percent.

In a statement, UniCredit said it has entered into new financial instruments relating to Commerzbank shares, in line with its previously stated ambition to reach a 29.9 percent stake.

The Italian bank also has submitted the necessary regulatory filings to acquire a stake in Commerzbank in excess of 10 percent, up to 29.9 percent. The authorization process is now activated, and interactions with authorities ongoing.

UniCredit's current overall position totals around 28 percent, of which 9.5 percent through a direct stake and around 18.5 percent through derivative instruments. UniCredit, which has been eyeing to acquire Commerzbank, in early September acquired an equity stake equal to around 9 percent, in which a 4.49 percent stake was acquired from the German Government.

In late September, the company bought around 11.5 percent shares, totaling its stake in the German banking major to around 21 percent. With that, UniCredit became the largest shareholder of Commerzbank, ahead of the German government.

UniCredit now said its average entry price for the entire position is below current trading levels.

The company said, "This move reinforces UniCredit's view that substantial value exists within Commerzbank that needs to be crystalized. It reflects the belief in Germany, its businesses and its communities, and the importance of a strong banking sector in powering Germany's economic development. The position remains at this time solely an investment and does not have any impact on the public exchange offer with Banco BPM."

On the XETRA, Commerzbank shares were trading at 15.84 euros, up 3 percent.

In Milan, UniCredit shares were at 38.60 euros, up 1 percent.