Unicredit shareholders overwhelmingly approved a capital increase on Monday. This clears the path for a takeover bid for Commerzbank. CEO Andrea Orcel is pressing ahead despite disclosed risks.
Unicredit shareholders granted CEO Andrea Orcel a strong mandate on Monday by overwhelmingly approving a capital increase. The vote paves the way for a takeover bid by the Italian bank for Commerzbank.
Unicredit recently disclosed the risks of the megadeal to its shareholders. These include the potential departure of key employees and customers, which could diminish the takeover's appeal. Orcel's hostile approach against resistance may exacerbate these challenges.
The German federal government's opposition poses another risk. With its 12 percent stake in Commerzbank, Berlin cannot prevent Unicredit from gaining a majority but can block full control and delisting. Orcel's strategy has not yet prompted the government to relent.