Andrea Orcel, CEO of UniCredit, surprised Germany by increasing the bank’s stake in Commerzbank from 9% to 21%, using a strategy reminiscent of past hostile takeover battles. By exploiting discrepancies in EU disclosure rules for financial derivatives, UniCredit was able to disclose a significant stake in Commerzbank while complying with ownership limits. The core of the trade involves total return swap agreements with Barclays and Bank of America, allowing UniCredit to gain economic exposure to Commerzbank’s stock. This maneuver, orchestrated without external advisers, showcases UniCredit’s strategic patience and creativity in pursuing its acquisition goals. During the 2008 financial crisis, Porsche and Schaeffler Group faced significant losses due to drops in VW and Continental shares. Orcel has now hedged his Commerzbank position with a collar structure to limit downside risk while demonstrating serious interest in gaining control of the bank despite political opposition. UniCredit’s trades have also made it difficult for potential rivals to build a similar derivatives position in Commerzbank, making counter bids more challenging for others.
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Prosperity (PB) Q2 2025 Earnings Call Transcript
Prosperity Bancshares (NYSE:PB) has announced a definitive agreement to acquire American Bank Holding Co., aiming to strengthen its presence in South and Central Texas. This merger will add four branches in San Antonio and may lead to a leading market share in Corpus Christi. Want More Context? 🔎
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