LONDON – Barclays (NYSE: BCS) helped UniCredit build its stake in Commerzbank using derivatives, according to a source familiar with the matter who spoke to Reuters. This move paves the way for the Italian bank to become the German lender’s biggest investor.
On Monday, UniCredit said it had obtained “financial instruments” that could eventually allow the Italian bank to hold a stake of about 21% in Commerzbank.
Representatives for Barclays and UniCredit declined to comment.
Investors can use derivatives – contracts between two parties committing to a sale or purchase in the future, subject to certain conditions – to gain exposure to a company without owning the actual shares.
UniCredit can’t own over 9.9% of Commerzbank shares without approval from its chief regulator, the European Central Bank, which it is now seeking.
Barclays (NYSE: BCS) was among the banks that arranged the Commerzbank-linked derivatives structure, the person with knowledge of the matter told Reuters.
German Chancellor Olaf Scholz criticized UniCredit’s move as “an unfriendly attack”, signaling growing hostility towards the Italian bank.
UniCredit is seeking approval from the ECB to go up to 29.9% and said its exposure to Commerzbank had been hedged “to provide it with full flexibility” to either retain, sell or increase the stake further.
Bloomberg reported earlier Barclays’ involvement in UniCredit’s move on Commerzbank.
(Source: ReutersReuters)
