A takeover bid for Germany's second-largest private bank from the Italian Unicredit is becoming increasingly likely. The major Italian bank has increased its stake in Commerzbank to around 28 percent, as announced by the Milan-based institution on Wednesday.

A stake of 9.5 percent is held directly in Commerzbank shares. The remainder of 18.5 percent is accounted for by financial instruments, according to the statement. Most recently, the stake amounted to around 21 percent.

The bank, led by CEO Andrea Orcel, continues to stress that the investment remains purely strategic. It also has no impact on the parallel takeover bid for the Italian Banco BPM.

Commerzbank Shares Firmer

The announcement provided a significant boost to Comerzbank's share price. In early trading, it rose by as much as 4.3 percent at times and is currently up 2.8 percent at €15.81.

At the beginning of September, Unicredit had used the partial sale of the shares held by the German state to buy 4.5 percent of the shares in one fell swoop and build up a substantial position of 9 percent in Commerzbank. Further shares up to a 21 percent stake were secured via derivatives.

Obligation to Make an Offer from 30 Percent

This still has to be approved by the banking supervisory authority of the European Central Bank (ECB). Unicredit has applied for permission to increase its stake to up to 29.9 percent. From 30 percent, it would be obliged to submit a public takeover bid.

The German Ministry of Finance does not intend to sell any more Commerzbank shares of the remaining 12 percent stake until further notice. The state had supported Commerzbank during the financial crisis and Unicredit's takeover plans met with rejection from politicians.

Reference is often made to Hypovereinsbank, which was already taken over by Unicredit in 2005. In the years that followed, the management was completely replaced and two thirds of the jobs were gradually cut.