Italian lender UniCredit has increased its equity stake in Commerzbank to 20% by converting derivatives into stock. The move positions UniCredit as the largest shareholder of Commerzbank, surpassing the German government,

UniCredit SpA, the Italian lender that hopes to acquire Commerzbank AG, increased its equity stake in the German firm and became its largest shareholder after converting derivatives into stock. The move gives Milan-based UniCredit about 20% of the effective voting rights and it intends to eventually convert its remaining “synthetic position” to boost its Commerzbank holding to roughly 29%,

UniCredit is increasing its stake in Commerzbank to 29%, aiming to strengthen its position in Germany’s banking sector. The Italian bank, led by CEO Andrea Orcel, has converted derivatives representing 10% of Commerzbank shares into equity, gaining 20% voting rights. It also holds options on another 9%, making it the largest private shareholder.