Four Heavyweight Investment Banks Sitting Pretty with Commerzbank's Financial Instruments
The Frankfurt Tango Continues
UniCredit and Its Associated Aides
The Unicredit-Commerzbank merger saga is getting juicier! An examination of Commerzbank's shareholder structure brings several investment banks and D.E. Shaw, a US hedge fund, into the limelight. Together, they hold a staggering combined 33.36% of shareholdings in Commerzbank, with financial instruments accounting for just under 1%.
Citigroup made a splashy entry with a 0.6% equity stake and derivatives worth 4.54% on December 20th, building upon the foundations laid earlier by Bank of America, Barclays, and Jefferies, who beefed up their positions in September and October. Unicredit has disclosed its own equity and derivative purchases, totaling 28.08%.
The ECB's clock is ticking
Rumors swirl that Unicredit sent its ECB approval application for a stake up to 30% as far back as mid-October. Approval proceedings, which usually take 60 working days, could extend by another 30 days if needed. If all goes as planned, a final decision may be just around the corner! If Unicredit hits the 30% threshold, it'll be compelled to make a play for the takeover.
As for the intentions of the four investment banks or their deals with Unicredit, details are muddied. While both Citi and Bank of America kept mum about their strategies, industry whispers suggest these could beplain ol' hedging transactions for swap agreements.
Potential use of these derivatives by Unicredit to acquire additional shares would require a fresh round of ECB approval.
Extra Bits
- Unicredit's Play for dominance: Unicredit already raised its stake close to 30% with approvals from German Federal Cartel Office and ECB. This move suggests an expansion of its presence in the German market, but no definitive takeover announcement has been made.
- Market Vibes: Commerzbank has seen increased short interest and appears to have growth potential, as per market performance data and favorable ratings from various analysts.
For an insider look at any arrangements between Unicredit and these investment banks, further announcements or specific sources will be needed. Keep your eyes peeled on this unfolding drama!
- Unicredit and Citigroup, along with Bank of America and Barclays, have significant shareholdings in Commerzbank, totalling approximately 33.36%, with financial instruments accounting for nearly 6% of Commerzbank's overall value.
- Rumors suggest that the investment banks, including Citigroup, may have entered into hedging transactions with Unicredit for swap agreements, though the exact details of their strategies remain undisclosed.
- If Unicredit successfully acquires a 30% stake in Commerzbank, it could be compelled to make a takeover bid, and the potential use of derivatives by Unicredit for such a purpose would require fresh approval from the European Central Bank.
