UniCredit Becomes Top Commerzbank Owner by Converting Stake

UniCredit SpA, the Italian lender that hopes to acquire Commerzbank AG, doubled its equity stake in the German rival to about 20% after converting derivatives into stock.

The move makes UniCredit the largest shareholder of Commerzbank, ahead of the German government, which opposes a takeover. The Milan-based firm intends to eventually convert its remaining “synthetic position” to boost its equity holding to about 29%, according to a statement late Tuesday.