UniCredit, the Italian banking giant, has taken strategic measures to protect its substantial 20.5% stake in Commerzbank. By activating derivatives through American trader Jefferies, UniCredit has shielded its investment against potential stock price fluctuations. This move allows the Italian bank to carefully consider its options, including the possibility of increasing its shareholding or even pursuing a merger between the two financial institutions.
Market Reactions and Future Prospects
The German government and Commerzbank have expressed opposition to any hostile takeover attempts, emphasizing the bank's importance to the German economy and its commitment to independence. Any decision regarding UniCredit's potential stake increase would require approval from the European Central Bank. Despite the current uncertainties, Commerzbank's stock has shown relative stability, with recent modest gains. Analysts project a dividend of 0.513 euros for the current year and set an average price target of 16.86 euros for Commerzbank shares.
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