MILAN (Reuters) - Italian bank UniCredit said on Wednesday it had raised its potential stake in Germany's Commerzbank to 28% by signing new derivative contracts. UniCredit has applied to the European
UniCredit Increases Commerzbank Stake to 28% with Derivatives
MILAN (Reuters) - Italian bank UniCredit said on Wednesday it had raised its potential stake in Germany's Commerzbank to 28% by signing new derivative contracts.
UniCredit has applied to the European Central Bank to be allowed to get to 29.9% of Commerzbank. It said it was in touch with supervisors while the authorisation process was ongoing.
It said it held 9.5% of Commerzbank as a direct stake and 18.5% through derivatives.
"UniCredit's average entry price for the entire position is below current trading levels," the bank said, indicating it would be able to liquidate the investment at a profit.
"UniCredit's economic exposure is almost fully hedged, displaying prudence in approach and providing full flexibility and optionality."
The move comes while UniCredit has also launched a buyout offer for smaller domestic rival Banco BPM.
(Reporting by Valentina Za; Editing by Tomasz Janowski and Louise Heavens)
