The German government is not giving up and to prevent Unicredit from taking control of Commerzbank in Berlin, a more decisive return of the State to the bank’s capital is even being considered. According to Handelsblatt, within the governing coalition there are increasing openings towards strengthening public participation, currently just above 12%, with the aim of blocking an acquisition considered undesirable.
A PUBLIC SHIELD AGAINST THE TENDER OFFER
The hypothesis under study, according to parliamentary and government sources cited by the economic daily, involves the participation of the Kreditanstalt für Wiederaufbau (KfW), the public development bank. It would be KfW acting on behalf of the State, increasing the stake and effectively creating a barrier to the definitive entry of the Italian group.
Neither the public bank nor the federal government have officially commented, but according to rumors gathered by Reuters, the use of this instrument is being seriously considered in confidential political talks.
The main issue remains the cost, adds Handelsblatt: to reach a blocking minority would require several billion euros. A significant amount, which reopens the debate on the role of the State in the economy at a time when Berlin is trying to reconcile fiscal discipline and the protection of strategic assets. It was precisely a previous sale of shares, equal to 4.5%, that paved the way for Unicredit’s entry, then for about 700 million euros. Today that package would be worth much more.
THE STRATEGIC ROLE OF COMMERZBANK
The newspaper once again emphasizes the systemic importance attributed to Commerzbank by the German political and financial world. The bank is considered a pillar in financing small and medium-sized enterprises, especially in international activities, and a significant player for the stability of the Frankfurt financial center. It is also on this basis that several majority representatives urge not to exclude public intervention.
Asked by reporters, Armand Zorn, SPD deputy parliamentary group leader in the Bundestag, described a possible increase in state participation as a “very unusual measure for a stable and profitable company,” to be considered only as a “last resort.” Words that also reflect a certain caution: on one hand, there is the desire to avoid a hostile takeover, on the other, the awareness of the political and financial implications that a direct intervention would have.
UNICREDIT’S OFFENSIVE AND THE REACTIONS
Pressure on Berlin increased after Unicredit CEO Andrea Orcel launched a public tender offer to bring the stake above 30%. A threshold that would allow the Italian group to consolidate its position and, over time, proceed with further acquisitions.
Commerzbank’s management, led by Bettina Orlopp, openly opposes the operation, considered hostile, and can count on political support which, however, at the current stage, remains confined to statements and does not translate into immediate defense tools. But from the Bundestag chambers comes a message that today the country’s leading economic daily reports clearly: a hostile acquisition “is not in the interest of Germany as a banking center.” A line that could translate, if necessary, into an unprecedented public intervention.
