Barclays Facilitates UniCredit's Strategic Move with Derivatives

Barclays helped UniCredit increase its stake in Commerzbank using derivatives, aiming to make the Italian bank the largest investor in the German lender. UniCredit is seeking approval from the ECB to potentially own up to 29.9% of Commerzbank. German Chancellor Olaf Scholz criticized the move as unfriendly.

Barclays has assisted UniCredit in leveraging derivatives to build its stake in Commerzbank, according to a source familiar with the matter. The move positions the Italian bank to become Commerzbank's largest investor.

Earlier on Monday, UniCredit disclosed that it had acquired financial instruments allowing it to potentially hold a 21% stake in Commerzbank. Representatives for Barclays and UniCredit declined to comment on the matter.

Derivatives enable investors to gain exposure to a company without directly owning shares. UniCredit, which currently can't own more than 9.9% of Commerzbank shares without the European Central Bank's (ECB) approval, is now seeking authorization to increase its stake to 29.9%. German Chancellor Olaf Scholz has labeled the move as an 'unfriendly attack' in a reflection of rising tensions.

(With inputs from agencies.)