Italy's second-biggest bank UniCredit has increased its stake in Germany's third-biggest lender Commerzbank to 26%, the Italian bank said Monday.
    At the moment, however, it does not want to ask for seats on the board, it said.
    UniCredit "has increased its consolidated shareholding in Commerzbank to approximately 26%," and "the remaining 'synthetic' position will be converted into physical shares in due course, bringing the total shareholding to approximately 29%," UniCredit said in a statement, specifying that "it does not currently intend to seek board representation." The operation, it said, follows the previously announced schedule, "in line with the timeline communicated in July." However, the total impact on the CET1 ratio for the equity stake, which is approximately 29%, rises to approximately 145 basis points (previously communicated as 110) "due to the increase in the stock price and the simultaneous restructuring of the collar derivative hedge, aimed at reducing future volatility on the income statement." The return on investment is confirmed at approximately 20%.
    UniCredit thus strengthens its position as Commerzbank's largest shareholder, without entering into management.
    However, as stated in a statement, "UniCredit will continue to closely monitor Commerzbank's progress in sustainably strengthening its business and creating value for its shareholders, customers, and employees." "To date," UniCredit emphasizes, "the investment has exceeded pre-defined financial metrics, thus creating significant shareholder value," and it hopes "this positive trajectory will continue."
   

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