UniCredit says increasing Commerzbank stake to 21%

(ANSA) - ROME, SEP 23 - UniCredit said Monday in a statement that it has entered into financial instruments enabling it to increase its stake in Commerzbank to 21% of the capital.
    Italy's second-largest bank said it has requested the European Central Bank for authorization to raise its stake beyond 10% of the capital to reach a holding of up to 29. 9% in the German bank.
    UniCredit said in the note that it had acquired through financial instruments an additional 11.5% of Commerzbank explaining that "the physical settlement under the new financial instruments may only occur after the required approvals have been obtained".
    In addition to the initial 9%, UniCredit's position now totals around 21%, the lender said.
    "The majority of UniCredit's economic exposure has been hedged to provide it with full flexibility and optionality to either retain its shareholding, sell its participation with a floored downside, or increase the stake further. "This will depend on the outcome of engagement with Commerzbank, its management and supervisory boards as well as its wider stakeholders in Germany", UniCredit said in the note. (ANSA).