FRANKFURT, April 24 (Reuters) - Germany's banking watchdog BaFin on Friday said it had ordered the Italian lender UniCredit to stop improper advertising related to its attempt to take over Commerzbank
Germany's financial watchdog faults UniCredit tactics in Commerzbank takeover battle
BaFin Intervenes in UniCredit-Commerzbank Takeover Dispute
By Tom Sims and Alexander Hübner
Regulatory Action Against UniCredit
FRANKFURT, April 24 (Reuters) - Germany's banking watchdog BaFin on Friday moved to prohibit UniCredit from making defamatory statements in advertisements and analyst calls about the financial health of Germany's Commerzbank, as the Italian lender pushes for a takeover of its German rival.
Background of the Takeover Battle
The unusual measure by the German regulator in the middle of a months-long takeover battle comes after UniCredit posted an advertisement on social media across Europe that called Commerzbank "neglected, uncertain, short-sighted" and after statements by UniCredit CEO Andrea Orcel to analysts that Commerzbank's "current trajectory will put at risk its survival in the medium term".
BaFin's Official Statement
BaFin, in its ruling published late on Friday, said UniCredit's ads were provocative and unobjective, containing "speculation regarding the financial situation of Commerzbank."
It said that UniCredit was prohibited from making statements "that portray the current economic situation of the target company or its subsidiaries and their future prospects in a negative, sensationalist, or unobjective manner".
Responses from UniCredit and Commerzbank
UniCredit's Reaction
UniCredit said in a statement that the advertisement was "designed to promote the positive vision we have for Commerzbank" and noted that it acknowledged its ambiguity and removed it.
But the Italian bank added: "Some of the rhetoric used to push back on this transaction has been overly aggressive and highly personal in nature from the outset. It would be in the best interest of all stakeholders for the rhetoric to be toned down."
Commerzbank's Position
Commerzbank declined to comment on the BaFin ruling.
Reporting Credits
(Reporting by Tom Sims; Editing by David Gregorio)
